PH foreign reserves rose to $104.8B in August 2026 — BSP data

The Philippines' gross international reserves (GIR) increased in August due to the rise in gold prices and the central bank's higher earnings from its overseas investments.

Data released by the Bangko Sentral ng Pilipinas (BSP) showed the GIR—a measure of the ability to settle import payments and service foreign debt—stood at $104.8 billion last month from $103.3 billion in July.

GIRs are eligible foreign assets, including securities, currency and deposits, reserve position in the fund, gold, special drawing rights, and other reserve assets, held by the central bank.

The central bank said the GIR level in August provides "sufficient reserves to meet the country's import needs, service its external debt obligations, and serve as a buffer against external economic shocks."

Meanwhile, the month-on-month reserves increased was mainly driven by upward valuation adjustments in the BSP's gold holdings due to the increase in the price of gold in the international market, and the central bank's higher net income from its investments abroad as global bond yields increased.

"The end-August GIR level can cover up to 6.6 months' worth of imports of goods and payments of services and primary income," the BSP said.

"It can likewise service about 3.3 times the country's short-term external debt based on residual maturity," it added.

Short-term debt based on residual maturity refers to the sum of outstanding external debt with original maturity of one year or less, and principal payments on medium- and long-term loans of the public and private sectors falling due within the next 12 months.

By convention, GIR is considered adequate if it can finance at least three-months' worth of the country's imports of goods and payments of services and primary income.

The GIR level is deemed adequate if, as of a given period, it is at least equal to 100% of a country's total short-term external debt—public and private—falling due within the next 12 months. — VDV, GMA News