The country’s gross international reserves (GIR) edged down to US$105.7 billion at end-July 2025 from US$106.0 billion the previous month, according to preliminary data released by the Bangko Sentral ng Pilipinas (BSP).
The BSP attributed the modest decline to lower global gold prices and foreign currency withdrawals by the national government to service external debt.
Despite the dip, the central bank emphasized that the current GIR level remains a robust external liquidity buffer, sufficient to cover 7.2 months’ worth of imports of goods and payments of services and primary income—more than double the conventional adequacy benchmark of only three months.
The reserve level also provides 3.4 times cover for the country’s short-term external debt based on residual maturity, underscoring the country’s strong external position amid global financial uncertainties.
In parallel, net international reserves—which account for the BSP’s reserve liabilities—also declined by US$0.3 billion, mirroring the movement in gross reserves.
The GIR is composed of foreign exchange, foreign-denominated securities, gold, and other reserve assets. It is a key metric in assessing a country’s ability to meet external obligations, manage exchange rate volatility, and maintain investor confidence.
The BSP reiterated that the current reserve position remains adequate to meet balance of payments financing needs, including during periods of stress, reinforcing the Philippines’ macroeconomic stability.
