The Philippines’ gross international reserves (GIR) stood at US$104.0 billion as of end-May 2026, remaining at a comfortable level that provides a buffer against external shocks, the Bangko Sentral ng Pilipinas (BSP) said.
The latest GIR position is considered sufficient to cover 6.7 months’ worth of imports of goods and payments of services and primary income, and is also equivalent to 3.9 times the country’s short-term external debt based on residual maturity, underscoring the country’s external liquidity position.
In a media advisory, the BSP said the month-on-month movement in reserves was driven mainly by drawdowns by the national government on its foreign currency deposits with the central bank for external debt servicing, as well as downward valuation adjustments in gold prices and other foreign-currency denominated assets.
These were partly offset by net foreign currency deposits from the national government and income from BSP’s offshore investments.
Despite the slight adjustments in reserves, the central bank emphasized that the GIR level remains adequate to support the country’s external financing needs.
BOP posts surplus in May
IMAGE CREDIT: BSP
The Philippines also recorded a US$131 million balance of payments (BOP) surplus in May 2026, reversing pressure seen in earlier months and helping narrow the year-to-date deficit.
From January to May 2026, the cumulative BOP deficit slightly improved to US$7.3 billion, from US$7.4 billion in the January-to-April period.
The BSP said the overall BOP position reflected continued trade in goods deficits and net outflows from foreign portfolio investments, which weighed on external accounts during the period.
These were partially offset by sustained inflows from overseas Filipino (OF) remittances, foreign borrowings by the national government, trade in services, and foreign direct investments, which helped stabilize the country’s external position.
External buffers remain intact
The BSP noted that gross international reserves include foreign assets such as securities, deposits, gold, special drawing rights, and reserve positions with the International Monetary Fund.
While global financial conditions remain fluid, the central bank said the current GIR level continues to provide a strong liquidity cushion, allowing the country to meet import requirements and service external debt obligations even amid external volatility.
Economists typically view GIR as a key indicator of external stability, particularly for emerging markets like the Philippines that remain exposed to global trade and capital flow movements.
With the latest figures, policymakers are expected to continue monitoring global financial developments, including interest rate trends, commodity prices, and portfolio investment flows, all of which influence the country’s external balance position.
