The Philippines’ gross international reserves (GIR) rose to $104.8 billion at the end of August, up from July’s 1.5-year low, as higher gold prices and income from the Bangko Sentral ng Pilipinas (BSP)’s foreign investments boosted the central bank’s reserve holdings.

Preliminary data released by the BSP on Monday showed that reserves increased by about $1.5 billion, or 1.4 percent, from $103.3 billion a month earlier. However, the August level was still below the $107.1 billion recorded a year earlier.

GIR consists of eligible foreign assets held by the central bank, including securities, currency and deposits, the country’s reserve position in the IMF, gold, special drawing rights and other reserve assets.

The BSP said the end-August GIR was equivalent to 6.8 months of imports of goods and payments for services and primary income. It was also enough to cover about 3.7 times the country’s short-term external debt based on residual maturity.

However, the August figure remained lower than the all-time high posted last February, shortly before the escalation of tensions in the Middle East.

“[GIR] still [remains] lower than the record high of US$113.3 billion posted in February 2026, or down by more than US$8 billion in six months, partly due to intervention/smoothing [of] currency volatility since the war on Iran/Middle East started on February 28, 2026, and also amid some payment of foreign debt,” said RCBC Chief Economist Michael Ricafort.

The BSP said the increase was mainly due to upward valuation adjustments in its gold holdings following the rise in international gold prices, as well as net income from its investments abroad.

These gains were partly offset by withdrawals by the national government from its foreign currency deposits with the BSP to service external debt.

The composition of reserves also shifted during the month. BSP data showed that foreign currency securities fell to $64.0 billion in August from $67.2 billion in July, while gold holdings increased to $19.1 billion from $17.5 billion.

Currency and deposits declined to $1.55 billion from $1.88 billion, while the country’s reserve position in the International Monetary Fund rose to $728 million from $725 million.

The latest reserve position remains above the central bank’s usual adequacy benchmark of at least three months of imports, providing a buffer against external shocks and supporting the country’s ability to meet foreign currency obligations.

“[F]or the coming months, GIR would be a function of world gold prices for [the] valuation of gold holdings, structural inflows of U.S. dollars into the country, such as OFW remittances, BPO revenues, foreign tourism receipts, [and] foreign investments, though [these would be] offset by net imports/trade deficit, payment of foreign debt/obligations, investments abroad, and any intervention/smoothing of volatility in the local currency market,” added Ricafort.