The country's gross international reserves (GIRs) stood at $104.0 billion as of end-May 2026, slightly lower than the previous month's $104.3 billion, as the Bangko Sentral ng Pilipinas (BSP) drew on reserves to support government debt payments and foreign exchange operations.
Preliminary BSP data showed the decline was mainly due to the national government's drawdowns on its foreign currency deposits with the central bank for external debt servicing, downward valuation adjustments in the BSP's gold holdings following a drop in global gold prices, and the BSP's net foreign exchange operations.
Despite the decrease, the BSP said the current reserve position still remains at a level considered more than adequate to cushion the economy from external shocks. The GIR can cover 6.9 months' worth of imports of goods and payments of services and primary income, well above the international benchmark of at least three months.
The reserve buffer is also equivalent to 3.6 times the country's short-term external debt based on residual maturity, indicating a strong capacity to meet foreign obligations as they fall due.
GIRs consist of foreign assets such as securities, deposits and gold held by the BSP. These reserves serve as a key safeguard against external vulnerabilities by providing foreign currency liquidity to finance imports, service external debt, manage currency volatility and support financial stability.