The Philippines’ gross international reserves (GIR) have grown to $106.7 billion, staying above the $100-billion mark for the 17th straight month in February in what an analyst described as “a good sign” of a strong external position.
Earlier, Bangko Sentral ng Pilipinas (BSP) data showed the country’s February GIR has risen to $106.7 billion from $103.3 billion in January, with proceeds from Philippine global bonds and higher world gold prices boosting the reserves level.
The BSP said over the weekend the February level marked the first time the GIR climbed after four months of declines, or since it hit $112 billion in September 2024.
Noting the turnaround in February, RCBC chief economist Michael Ricafort said in a statement the GIR “may further strengthen the country’s external position, which in turn, fundamentally supports the country’s favorable credit ratings.”
“Favorable credit ratings reflect the Philippines’ improved economic and credit fundamentals that could help attract more international investments and international credit at a much lower cost and with better terms into the country. It could also further help boost the country’s GIR,” Ricafort said.
Going forward, Ricafort said the GIR could be supported further by continued growth in the country’s structural inflows from OFW remittances, BPO revenues, exports, foreign tourism receipts and continued foreign investment inflows.
The latest GIR level represents more than adequate external liquidity equivalent to 7.5 months’ worth of imports of goods and payments of services and primary income, the BSP said.
The “GIR is viewed to be adequate if it can finance at least three months worth of the country’s imports of goods and payments of services and primary income,” the BSP said.
The February GIR “can also cover about 3.8 times the country’s short-term external debt, based on residual maturity,” it said.
The month-on-month increase in the GIR level reflected upward valuation adjustments in the central bank’s gold holdings due to the increase in the prices of gold on the international market and the national government’s net foreign currency deposits with the central bank, which include proceeds from its issuance of ROP Global Bonds, the BSP said.
The BSP’s reserve assets consist of foreign investments, gold, foreign exchange, reserve position in the IMF and special drawing rights.
The total international reserves included 81 percent in foreign investments amounting to $89.4 billion in February 2024. Gold, at $12.05 billion, accounted for 11.29 percent.
Net international reserves (NIR), or the difference between GIR and the BSP’s reserve liabilities, increased by $3.4 billion to $106.6 billion at the end of February from the January 2025 level of $103.2 billion.***
