Philippines’ May GIR Rises to $105.5 Billion

The Philippines’ gross international reserves (GIR) rose to US$105.5 billion as of end-May 2025, up from US$105.3 billion the previous month, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

This increase strengthens the country’s external liquidity buffer, now sufficient to cover 7.3 months’ worth of imports of goods, services, and primary income.

The GIR also covers 3.7 times the country’s short-term external debt based on residual maturity, a key benchmark used to assess reserve adequacy.

“The increase in the GIR level reflects the country’s strong external position and supports confidence in the Philippine economy,” the BSP said in its statement.

The month-on-month gain in reserves was mainly driven by higher gold prices in the international market, which resulted in valuation gains in the BSP’s gold holdings.

Additional contributors to the rise were income earned from the BSP’s overseas investments and net foreign currency deposits by the national government with the central bank.

The BSP’s gold holdings are part of its reserve assets, which also include foreign investments, foreign exchange, the reserve position in the International Monetary Fund (IMF), and special drawing rights.

Net international reserves (NIR), which are the difference between the BSP’s reserve assets and its liabilities, also rose slightly to US$105.34 billion from US$105.26 billion at the end of April.

Analysts say the GIR level remains a crucial buffer against external shocks and currency volatility, especially amid global financial market uncertainties.

By convention, GIR is considered adequate if it can cover at least three months’ worth of imports and 100 percent of short-term debt due within the next year.

“Reserves at this level help shield the country from potential balance of payments pressures, allowing authorities space to maintain macroeconomic stability,” said economist Jose Roberto Evangelista of the University of the Philippines.

As of May, the GIR also serves as reassurance for investors and credit rating agencies monitoring the country’s ability to meet external obligations.

The Philippines’ GIR has remained stable above US$100 billion since 2020, bolstered by remittance inflows, business process outsourcing earnings, and prudent external debt management.

Maintaining a strong GIR level is one of the BSP’s top priorities, supporting its mandate to ensure price and financial stability.

As the global economy adjusts to post-pandemic shifts and geopolitical risks, the Philippines’ reserves will be essential in navigating currency fluctuations and sustaining investor confidence.