The country’s gross international reserves increased to US$112.5 billion as of end-January 2026, based on preliminary Bangko Sentral ng Pilipinas data, providing a strong external buffer at a time when the local currency has shown some weakness against the US dollar.
In January, the peso averaged P59.162 per dollar, weaker than the P58.849 per dollar average in the previous period. So far in February, however, the peso has held relatively steady, averaging P58.901 per dollar, suggesting some stabilization despite ongoing global currency pressures.
The current level of reserves is equivalent to 7.5 months’ worth of imports and payments for services and primary income, well above the international adequacy benchmark of three months. It also covers about 4.1 times the country’s short-term external debt falling due within the next 12 months, underscoring the economy’s capacity to meet foreign obligations.
Gross international reserves consist of foreign currencies, foreign-denominated securities, gold, and other reserve assets. These serve as a financial safety net, allowing the country to pay for imports, service foreign debt, and help manage excessive volatility in the peso during periods of external stress.
Overall, the higher reserve level provides ample foreign exchange liquidity, helping support market confidence and cushioning the economy against external shocks even as the peso faces pressure from global financial conditions.
