The country’s gross international reserves (GIR) stood at US$104 billion at the end of May 2026, remaining at a level that ensures the country has enough foreign currency to meet import requirements, pay external debt obligations, and as a safety net against global economic disruptions. This serves as a key indicator of the nation’s ability to fulfill its foreign currency commitments.
Movements in reserves during the period were influenced by several factors. Downward adjustments came from the national government’s use of foreign currency deposits to settle external debt, changes in the valuation of the Bangko Sentral ng Pilipinas’ (BSP) gold and foreign assets, and the central bank’s foreign exchange operations. These were partially counterbalanced by new net deposits from the national government and investment earnings received by the BSP.
At the current level, reserves are sufficient to cover approximately 6.7 months of imports, services payments and primary income. They can also cover around 3.9 times the country’s short-term external debt based on remaining maturity schedules.
Meanwhile, the country’s balance of payments (BOP) recorded a surplus of US$131 million in May 2026. This helped reduce the cumulative deficit from January to May 2026 to US$7.3 billion, slightly lower than the US$7.4 billion deficit recorded in the first four months of the year.
The year-to-date position reflects a persistent trade deficit in goods and net outflows from foreign portfolio investments. These trends were offset in part by continued inflows from overseas Filipino workers’ remittances, government foreign borrowings, trade in services, and foreign direct investments.
