The Philippines’ gross international reserves declined to $107.5 billion as of end-March 2026, reversing the record-high level posted in February, according to the Bangko Sentral ng Pilipinas (BSP). The latest figure marks a drop of approximately $5.2 billion from February’s record high of $112.7 billion.

In a statement, the BSP attributed the decline mainly to national government payments on foreign debt, along with central bank foreign exchange operations and downward valuation adjustments on gold holdings due to movements in global prices.

Despite the decline, the central bank said the country’s reserve position remains strong and adequate, continuing to provide a buffer against external shocks.

Sufficient

The current level is sufficient to cover several months’ worth of imports and meet short-term external obligations, helping sustain confidence in the economy.

“This level provides a robust external liquidity buffer, equivalent to 7.1 months’ worth of imports of goods and payments of services and primary income. It covers about 3.9 times the country’s short-term external debt based on residual maturity,” the BSP said.

Gross international reserves are composed of foreign currency assets such as investments in securities, gold holdings, foreign exchange, and the country’s reserve position with the International Monetary Fund. These reserves are used by the central bank to manage exchange rate volatility and ensure external stability — particularly in light of the ongoing Middle East conflict.

Light intervention only in the forex market

BSP Governor Eli M. Remolona Jr. said previously that the central bank had only lightly intervened in the foreign exchange market, even as the peso fell to consecutive record lows in March, reaching an all-time low of P60.74 on 31 March and remaining within the P60-per-dollar range for much of the month.

“As you know, the peso has remained in the neighborhood at P60 to the dollar. So far, it hasn’t merited heavy intervention,” he said.

“We understand the weakness of the peso is not necessarily a bad thing. The peso, where it’s going, seems to help with our current account deficit, seems to help with our exports, so it’s not necessarily a bad thing,” Remolona added.

Peso regained ground

However, following the announcement of a two-week ceasefire, the peso regained some ground in foreign exchange markets, with the Bankers Association of the Philippines reporting an AM weighted average of P59.57.

The move reflects softer dollar demand and easing oil prices, which dipped below $100 per barrel after US President Donald Trump said the Strait of Hormuz would be safely reopened during the ceasefire period.