The Philippines recorded a balance of payments (BOP) surplus of US$82 million in September 2025, according to the Bangko Sentral ng Pilipinas (BSP). While significantly lower than the US$3.5 billion surplus posted in September of last year, the figure still reflects a positive external position driven by income from BSP’s foreign investments and net foreign currency deposits from the national government.
The BOP is a comprehensive record of the country’s financial transactions with the rest of the world, including trade, investments, and remittances. A surplus indicates that more foreign currency entered the country than left, suggesting stronger external inflows relative to outflows.
In the first nine months of 2025, the BOP deficit narrowed slightly to US$5.3 billion, from US$5.4 billion in the January–August period. The BSP said the deficit mainly reflected the country’s wider trade gap, partially offset by sustained inflows from overseas Filipino remittances, as well as trade in services, foreign investments, and foreign borrowings by the government.
The BOP position also mirrored an increase in the country’s gross international reserves (GIR), which rose to US$109.1 billion as of end-September 2025 from US$107.1 billion in August.
GIR represents the total foreign assets held by the BSP, including foreign currency, gold, and securities, which serve as the country’s buffer against external shocks such as natural disasters. Rising reserves generally indicate stronger external liquidity, helping the BSP stabilize the peso, finance import needs, and manage foreign debt obligations.
At its current level, the BSP said the GIR is sufficient to cover 7.3 months’ worth of imports of goods and payments for services and primary income. It also covers approximately 3.8 times the country’s short-term external debt, providing a strong cushion against sudden capital outflows or currency volatility.
The modest BOP surplus and rising GIR suggest improving foreign exchange conditions and a more stable external sector entering the final quarter of 2025, even as the country continues to manage a persistent trade deficit and global economic headwinds.