By Lee C. Chipongian The Bangko Sentral ng Pilipinas (BSP) reported a gross international reserves (GIR) of $78.967 billion as of end-May, down from the previous month’s $79.608 billion, partly due to outflows and changes in gold prices. The GIR is below the 2018 forecast of $80 billion estimated by the BSP, it first breached this level last April. Compared to same time last year, the GIR decreased by $3.209 billion or from $82.176 billion. BSP Governor Nestor A. Espenilla Jr. in a statement said the “marginal decline in the GIR level was due mainly to outflows arising from the foreign exchange operations of the BSP, payments made by the National Government (NG) for its maturing foreign exchange obligations, and revaluation adjustments on the BSP’s gold holdings, resulting from the decrease in the price of gold in the international market.” The NG net foreign currency deposits to the central bank, as well as BSP’s income from its overseas investments, remain to be primary sources of GIR buffers. The GIR level is still an “ample external liquidity buffer” as it is equivalent to 7.7 months’ worth of imports of goods, and payments of services and primary income. The country’s foreign currency and assets’ reserves is also 5.4 times adequate enough for short-term external debt cover based on original maturity and 3.9 times based on residual maturity. As of end-May, the BSP has a gold hoard amounting to $8.196 billion, lower than April’s $8.251 billion. Its total foreign investments reached $63.714 billion during the period, also down from $64.519 billion in the previous month. Last year, the GIR stood at $81.569 billion which was more than 2016’s $80.691 billion.