Philippine foreign reserves rise to USD 108.8 billion

The Philippines’ gross international reserves (GIR) increased to USD 108.8 billion in September 2025 from USD 107.1 billion in August on the back of higher global gold prices, investment income of the Bangko Sentral ng Pilipinas (BSP), and foreign currency deposits by the national government.

Preliminary data showed the latest GIR level provides an external liquidity buffer equivalent to 7.3 months’ worth of imports of goods and payments of services and primary income, well above the three-month adequacy convention.

BSP data also indicated the reserves can cover about 3.6 times the country’s short-term external debt based on residual maturity, underscoring the buffer’s role in managing refinancing risks.

Similarly, net international reserves rose by USD 1.7 billion to USD 108.8 billion at end-September from USD 107.1 billion at end-August.

GIR consist of foreign-currency assets such as securities and cash holdings as well as gold and other reserve claims, which help the country finance imports and external debt obligations, stabilize the peso, and cushion external shocks.

Despite the month-on-month gain, September’s GIR remained below the record USD 112.7 billion level posted in September 2024.

Background notes state that GIR adequacy is commonly assessed against its ability to finance at least three months of imports and to cover 100 percent of foreign liabilities due within the next 12 months, thresholds the latest level comfortably exceeds.

By definition, short-term external debt based on residual maturity includes obligations originally maturing within a year plus principal payments falling due on longer-term public and private loans in the next 12 months.

Net international reserves represent the difference between the BSP’s reserve assets and reserve liabilities, providing a gauge of usable external resources after accounting for short-term obligations.