Philippine c.bank ups forex reserves estimates

MANILA, Nov 8 - The Philippine central bank has raised its estimates for gross foreign reserves for 2009 and 2010, citing strong remittances from Filipinos working overseas and investments, its governor said at the weekend.

Amando Tetangco said the central bank now expects reserves to reach between $43 billion and $44 billion by year-end, higher than the previous estimate of $42-$43 billion.

The reserves are seen rising further to between $47 billion and $48 billion by the end of 2010, compared to an earlier projection of $47 billion.

Remittances from overseas Filipinos are likely to grow 4 percent this year from a record $16.4 billion in 2008, and by a further 6 percent in 2010. [ID:nMNB002483]

"The country's external payment position will continue to be favourable in 2010," Tetangco told reporters.

"Risk appetite will improve next year, and this will result in higher inflows of investments to emerging markets like the Philippines."

The central bank on Friday said its foreign reserves rose to a record $43.18 billion at the end of October from $42.53 billion in September. [ID:nMNA002452]

Even if the Philippines' foreign reserves are at all-time highs, it still ranks among the countries with the lowest reserves in the region, outpacing only Pakistan and Bangladesh. [ID:nSP42246]

(Reporting by Manolo Serapio Jr.; Editing by Sanjeev Miglani)