The country’s gross international reserves (GIR) experienced a notable increase in May 2025, rising to US$105.5 billion from US$105.3 billion at the end of April 2025, according to Bangko Sentral ng Pilipinas (BSP). This upward trend, based on preliminary data, signifies a strengthened external liquidity buffer and enhanced economic resilience.
The latest GIR level provides substantial import cover, equivalent to 7.3 months’ worth of imports of goods and payments of services and primary income. Furthermore, it comfortably covers approximately 3.7 times the country’s short-term external debt based on residual maturity, underscoring a robust position against external shocks.
The month-on-month increase in the GIR level is primarily attributed to several key factors:
- Upward valuation adjustments in gold holdings: The Bangko Sentral ng Pilipinas (BSP) saw an increase in the value of its gold holdings, driven by the rising price of gold in the international market.
- Net income from BSP’s investments abroad: The BSP’s strategic international investments yielded positive net income, contributing to the reserves’ growth.
- National government’s net foreign currency deposits with the BSP: The national government’s net foreign currency deposits with the BSP also played a role in the expanded reserves.
Mirroring the positive trend in GIR, the net international reserves (NIR) also saw an increase of US$0.08 billion, climbing from US$105.26 billion as of end-April 2025 to US$105.34 billion as of end-May 2025.
BSP noted that this sustained growth in the country’s international reserves reinforces the nation’s strong economic fundamentals and its ability to navigate global financial fluctuations.
