The Bangko Sentral ng Pilipinas (BSP) on Friday reported a significant increase in the country’s gross international reserves (GIR) for February 2025, reflecting robust external liquidity and enhanced financial stability. Preliminary data shows that the GIR, an indicator of capacity to pay for external obligations, grew to USD106.7 billion by the end of February 2025, up from USD103.3 billion in January 2025, marking a notable month-on-month increase of USD3.4 billion.
This expansion in reserves, attributed to factors including foreign currency deposits from the national government (NG) and higher gold prices, underpins the country’s sound reserve management strategy. The latest GIR level represents an external liquidity buffer that is more than adequate, covering 7.5 months’ worth of imports of goods and payments for services and primary income. Additionally, it stands at about 3.8 times the country’s short-term external debt, ensuring ample cover for its foreign liabilities.
The increase in reserves is largely attributed to three key developments: (1) net foreign currency deposits from the NG, which included proceeds from the issuance of ROP Global Bonds, (2) upward valuation adjustments in the BSP’s gold holdings due to the increase in international gold prices, and (3) net income from the BSP’s investments abroad.
This robust reserve position underscores the Philippines’ resilience against global economic shocks, improving its capacity to manage external payments and strengthening its financial position. By maintaining a strong GIR buffer, the BSP enhances the country’s ability to respond to volatility in international markets, mitigate exchange rate risks, and manage the nation’s short-term external obligations more effectively.
Furthermore, the country’s net international reserves (NIR) also saw a positive change, rising to USD106.6 billion as of end-February 2025 from USD103.2 billion in January 2025. NIR, which reflects the BSP’s reserve assets minus its liabilities, provides an additional layer of security for the country’s financial system.
This continued growth in reserves highlights the BSP’s ongoing commitment to strengthening its monetary and fiscal policy frameworks, positioning the Philippines to maintain financial stability amid global uncertainties.
