The Philippines’ gross international reserves (GIR) climbed to a three-month high in June, providing the country with a stronger buffer against external shocks and reinforcing its ability to meet foreign payment obligations.

Data released by the Bangko Sentral ng Pilipinas (BSP) showed that the country’s GIR increased to $104.8 billion as of end-June 2026 from $104.1 billion at the end of May.

Net foreign currency deposits with the BSP

The central bank said the higher reserve level was driven mainly by the national government’s net foreign currency deposits with the BSP and the BSP’s net income from investments abroad.

These gains were partially offset by valuation losses on the central bank’s gold holdings and foreign currency-denominated reserve assets, as well as payments made by the national government for its foreign debt obligations.

Significant rise

Foreign currency deposits held by the national government with the BSP rose significantly to $2.3 billion in June from $831.7 million in May, contributing to the increase in the country’s reserve position. Other reserve assets also expanded to $8.58 billion from $6.26 billion a month earlier.

Meanwhile, the value of the BSP’s gold holdings declined to $17.19 billion from $19.48 billion in May, reflecting fluctuations in global gold prices. Foreign investments, which make up the largest component of the reserve portfolio, stood at $86.68 billion, slightly lower than the previous month.

Reserve level more than adequate

The BSP said the latest reserve level remains more than adequate to safeguard the economy against external risks.

As of end-June, the GIR represented 6.8 months’ worth of imports of goods and payments of services and primary income. It was also equivalent to about 3.7 times the country’s short-term external debt based on residual maturity.

The GIR serves as the country’s primary external liquidity buffer and is closely monitored by investors and credit rating agencies as an indicator of the Philippines’ ability to withstand global financial volatility, manage exchange-rate pressures and meet its international obligations.