The Philippines recorded a balance of payments (BOP) deficit of $373 million in January 2026, reflecting a shortfall in the country’s transactions with the rest of the world at the start of the year.
A deficit means more money flowed out of the country than came in during the month. The balance of payments tracks all financial transactions between the Philippines and other countries, including trade, investments, and debt payments.
Despite the deficit, the country’s gross international reserves (GIR) rose to US$112.6 billion as of end-January 2026. These reserves — made up of foreign currencies, foreign investments, and gold — act as a financial safety net.
The current reserve level is considered strong. It is enough to cover 7.5 months’ worth of imports and payments for services and income. It is also equivalent to 4.1 times the country’s short-term external debt based on residual maturity, meaning the Philippines has more than enough foreign currency to pay debts falling due within the next year.
Economists say healthy reserves help stabilize the peso, ensure the country can pay for imports such as fuel and food, and protect the economy during global financial shocks. While the January deficit signals external payment pressures, the ample reserves provide a cushion against risks.
