The Philippines’ gross international reserves (GIR) grew slightly to $105.9 billion in August from $105.7 billion in July, the Bangko Sentral ng Pilipinas (BSP) reported late Friday.
The increase in GIR, or the country’s buffer stock of US dollars, was primarily fueled by two factors: rising global gold prices and strong income from overseas investments, the BSP said.
The BSP views this as a “robust external liquidity buffer,” highlighting its strength and stability.
The GIR level in August was equivalent to 7.2 months of the country’s import and service payments and about 3.4 times its short-term foreign debt, the BSP said. The amount of GIR is crucial for financing imports, paying foreign debt, stabilizing the local currency, and protecting the economy from external shocks.
The reserves are made up of foreign investments, gold, foreign exchange holdings and other assets. As of end-August, the BSP’s foreign investments saw a slight dip to $85.85 billion, while gold reserves significantly increased to $14.52 billion. Foreign exchange holdings also rose to $897.8 million.
The BSP’s own forecasts for the GIR are conservative, with projections of $104 billion for 2025 and $105 billion for 2026.
Credit rating agency Moody’s recently pointed to the country’s “ample foreign-currency reserves” and its strong access to both local and international funding markets, which help the economy navigate global financial volatility. Moody’s has maintained its “Baa2” investment-grade rating and stable outlook for the Philippines since August of last year.
