The Philippines’ gross international reserves (GIR) declined to a nine-month low in January 2025 due to the Bangko Sentral ng Pilipinas’ (BSP) foreign exchange activities and the national government’s debt payments.
According to preliminary BSP data, the country’s foreign currency reserves fell to $103.021 billion by the end of January, a drop from $106.256 billion in December 2024. This marks the lowest level since April 2024, when reserves stood at $102.647 billion.
The central bank attributed the decline to foreign exchange interventions and government withdrawals from BSP deposits to settle external debt.
Rizal Commercial Banking Corp. Chief Economist Michael Ricafort also pointed to maturing foreign debt, state spending in foreign currency, and BSP’s moves to stabilize the peso against the US dollar as contributing factors.
Despite the decline, the BSP assured that the reserves remain sufficient, covering 7.3 months of imports and external obligations, well above the three-month benchmark. The GIR is also 3.6 times the country’s short-term external debt based on residual maturity.
Net international reserves (NIR)—which exclude the BSP’s liabilities—fell by $3.2 billion to $103.0 billion from $106.2 billion in December.
The country’s reserve assets include foreign investments, gold holdings, foreign exchange, IMF reserve positions, and special drawing rights.
