As a result, the country’s gross international reserves (GIR) as of endJuly 2017 remains at more than $ billion, equivalent to nearly nine (9) months’ worth of imports of goods and services. Need for vigilance While the economic backdrop is favorable, the BSP remains vigilant given global and domestic challenges.
An expected rise in US interest rates may drive portfolio capital outflows from emerging markets, including the Philippines, adding to exchange rate pressures in these economies. Moreover, US implementation of a conservative policy agenda on immigration, offshoring/outsourcing, trade, tax reform, labor/immigration laws, and financial and business regulation could impact exports as well as OF remittances.