Phl foreign reserves hit record $112.7B in February

The Philippines’ gross international reserves (GIR) climbed to a new record high of $112.7 billion as of end-February 2026, strengthening the country’s external liquidity buffer and its ability to withstand global economic shocks, the Bangko Sentral ng Pilipinas (BSP) said.

In a recent advisory, the central bank said the latest level surpassed January’s near-record $112.6 billion, continuing the steady buildup of reserves seen in recent months amid strong inflows from the national government’s foreign borrowings and income from the central bank’s investments.

The current reserve stock is sufficient to cover 7.5 months’ worth of imports of goods and payments of services and primary income, well above the international benchmark of three months. It is also equivalent to about 4.2 times the country’s short-term external debt based on residual maturity, indicating strong external liquidity.

GIRs consist of foreign-denominated securities, foreign exchange holdings, gold and other reserve assets, including special drawing rights with the International Monetary Fund. These assets serve as a financial buffer that allows the country to pay for imports, service foreign debt obligations and stabilize the peso during periods of market volatility.

The steady buildup of reserves comes after the BSP earlier reported that the country’s reserve position had already surged close to historic highs in January, reflecting continued confidence in the Philippines’ macroeconomic fundamentals and improving external accounts.

Strong reserves are closely monitored by investors and credit rating agencies because they provide assurance that the country can meet its external obligations even during global financial stress.

The growing reserve buffer also gives the central bank greater flexibility in managing currency volatility and responding to external shocks, particularly as global markets remain sensitive to geopolitical tensions, higher interest rates in advanced economies and fluctuations in global capital flows.