In the year after the debt relief, the unsustainable high deficit on the current account of the balance of payments again became prominent, combined with high credit growth and a declining trend in foreign exchange reserves and the import coverage. These developments prompted the central bank to tighten its monetary policy by increasing the reserve requirement beginning September 2011.
At this level, the GIR represents a more than ample liquidity buffer and is equivalent to 7.3 months’ worth of imports of goods and payments of services and primary income. 5. Exchange Rate – The peso averaged ₱52.34/USD1, appreciating slightly against the US dollar by 0.14 percent from the ₱52.41/USD1 average in March 2019.