Phl GIR eases to $105.7B in July

The country’s gross international reserves (GIR) slipped to US$105.7 billion at the end of July 2025, from US$106.0 billion in June, largely due to lower global gold prices and the national government’s drawdowns on its foreign currency deposits with the Bangko Sentral ng Pilipinas (BSP) to service external debt.

Movements in foreign assets value

Preliminary BSP data showed the decline also reflected movements in the value of foreign assets, which include foreign-denominated securities, foreign exchange holdings and gold.

GIR serves as the country’s buffer against external shocks, helping finance imports, meet foreign debt obligations, and stabilize the peso.

Strong cushion

The July level remains a strong cushion, equivalent to 7.2 months’ worth of imports of goods and payments for services and primary income.

It also covers about 3.4 times the country’s short-term external debt based on residual maturity.

Similarly, net international reserves — the difference between the BSP’s GIR and outstanding short-term foreign liabilities — dipped by US$0.3 billion in the same period, settling at US$105.7 billion.