Philippine reserves climb to USD 104.7B

The Philippines’ gross international reserves (GIR) rose to USD 104.7 billion at the end of June 2026, providing enough foreign exchange buffers to cover nearly seven months of imports while the country’s balance of payments (BOP) posted a strong surplus that significantly narrowed the year’s external payments deficit.

The stronger reserve position gives the Philippines greater protection against global economic shocks by helping stabilize the peso and ensuring the country has enough foreign currency to pay for critical imports such as fuel, food, medicines, and industrial raw materials. A healthy reserve buffer also boosts investor confidence and provides the government with more flexibility to respond to external financial pressures, factors that can ultimately help temper inflation and support economic stability.

The Bangko Sentral ng Pilipinas (BSP) said Monday that the country’s GIR reached USD 104.7 billion as of end-June, a revised figure that reflects the nation’s stockpile of foreign assets used to finance imports, meet external debt obligations, and cushion the economy against global financial shocks.

The latest reserve level was higher mainly due to the national government’s net foreign currency deposits with the BSP and the central bank’s earnings from its overseas investments.

These gains were partly offset by valuation losses stemming from changes in the prices of the BSP’s gold holdings and foreign currency-denominated reserve assets, as well as government withdrawals from its foreign currency deposits with the central bank to pay external debt.

Despite those offsets, the country’s reserve position remained at a level widely considered comfortable by international standards. The BSP said the end-June GIR could finance 6.8 months’ worth of imports of goods and payments for services and primary income, while covering about 3.7 times the country’s short-term external debt based on residual maturity.

The BSP also reported that the country’s overall balance of payments recorded a surplus of USD 3.4 billion in June, reflecting a stronger inflow of foreign exchange during the month.

The June surplus reduced the cumulative BOP deficit to USD 3.9 billion for the first six months of 2026 from USD 7.3 billion recorded during the January to May period.

The central bank said the year-to-date BOP position continued to reflect the country’s trade-in-goods deficit and net outflows from foreign portfolio investments.

However, those pressures were partly offset by sustained inflows from personal remittances sent by overseas Filipinos, foreign borrowings by the national government, earnings from trade in services, and foreign direct investments.

According to the statistical tables accompanying the release, the June reserve level marked an increase from USD 103.99 billion in May 2026, while the BOP swung from a USD 131-million surplus in May to a much larger USD 3.4-billion surplus in June.

The BSP defines the GIR as consisting of eligible foreign assets held by the central bank, including securities, currency and deposits, reserve position in the International Monetary Fund, gold, special drawing rights, and other reserve assets.