The purchasing power of the reserves has been maintained and, despite very low export receipts and the high import bill, the reserves remain relatively sizeable at approximately USD9 billion (P59 billion), which is equivalent to 20 months of imports of goods and services.
The explosive growth of the U.S. current account deficit from 2001 to 2006, coincident with falling interest rates both in the United States and globally, supports the notion that higher foreign saving relative to foreign investment was likely holding down U.S. interest rates at the time. What can the distribution of global current accounts tell us about international spillovers in the post-crisis era?