The country’s gross international reserves (GIR), an indicator of capacity to pay foreign currency ovligations, stood at USD103.0 billion at the end of January 2025, down from USD106.3 billion at the close of 2024, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP). This level of reserves remains robust, covering 7.3 months of imports of goods and payments of services and primary income—well above the adequate benchmark of three months. It also represents 3.6 times the country’s short-term external debt.
The drop in reserves is mainly attributed to the BSP’s foreign exchange operations and the national government’s use of its deposits with the BSP to meet foreign currency debt obligations. Despite the decrease in reserves, the net international reserves (NIR) also fell by USD3.2 billion, settling at USD103.0 billion.
The GIR continues to serve as a crucial economic buffer, providing financial stability and bolstering the country’s capacity to meet external obligations.
