The continued recovery in bank lending activity reflects the sustained expansion in business activity amid easing quarantine restrictions, declining COVID-19 cases, and increased vaccinations. The country’s external sector continues to provide sufficient buffers to ward off the potential adverse effects of external headwinds.
Our gross international reserves, which stood at $ billion as of end-November 2021, continue to provide ample cushion against unforeseen demand for foreign exchange liquidity. This is equivalent to 10.2 months’ worth of imports of goods and payments of services and primary income. It is also about six to nine times the country’s short-term external debt, based on residual and original maturity, respectively.