Philippines’ dollar reserves hit USD 110.9 billion at end-2025

The Philippines’ dollar reserves as of end-December exceeded the Bangko Sentral ng Pilipinas’ (BSP) estimate for the year as it reached over USD 110 billion.

Based on preliminary central bank data, the country’s gross international reserves (GIR) amounted to USD 110.873 billion at end-December, slipping by 0.34% from the USD 111.254 billion seen in the previous month.

However, this was 4.34% higher than the USD 106.257-billion foreign reserves recorded in 2024 and breached the BSP’s revised full-year projection of USD 109 billion.

GIR refers to the central bank’s foreign assets held mostly as investments in foreign-issued securities, foreign exchange, and monetary gold, among others.

These are supplemented by claims to the International Monetary Fund (IMF) in the form of reserve position in the fund and special drawing rights (SDR).

In a statement released late Wednesday, the BSP said the level of dollar reserves as of end-2025 is enough to cover about four times the country’s short-term external debt based on residual maturity.

It also equates to 7.4 months’ worth of imports of goods and payments of services and primary income, well above the three-month standard.

“The latest GIR level ensures availability of foreign exchange to meet balance of payment financing needs, such as for payment of imports and debt service, in extreme conditions when there are no export earnings or foreign loans,” the central bank said.

Record-high gold

BSP data showed that the country’s gold holdings rose by 3.06% to its highest yet at USD 18.578 billion as of end December. This exceeded the previous record of USD 18.026 billion at end-November. Year on year, it surged by 68.8% from USD 11.006 billion.

However, the central bank’s foreign investments stood at USD 87.009 billion by end-2025, slipping by 1.1% from USD 87.975 billion as of end-November and by 2.76% from USD 89.476 billion at end-2024.

This decline dragged the foreign reserves lower during the period, though tempered by record-high gold holdings, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said.

“The monthly decrease in the GIR (was) again largely due to the latest month-on-month decline in foreign investments… but positively offset by the continued month-on-month increase in gold holdings… to a new record high of USD 18.577 billion,” he said in a commentary.

Mr. Ricafort noted that gold prices in the global market climbed by 1.9% month on month in December, even hitting a fresh high of USD 4,549.92 per ounce on Dec. 26.

Meanwhile, the BSP’s foreign exchange holdings climbed by 6.51% to USD 647.2 million from USD 612.8 million at end-November. However, it plunged by 52.64% from USD 1.367 billion last year.

The Philippines’ reserve position in the IMF dipped by 0.14% month on month to USD 727.3 million at end-December from USD 728.3 million. Year on year, it grew by 7.65% from USD 675.6 million.

SDRs — the amount the Philippines can tap from the IMF’s reserve currency basket — were unchanged month on month at USD 3.912 billion but increased by 4.02% from USD 3.761 billion at end-2024.

“The dip in GIR this month is mainly due to debt payments and BSP’s moves to stabilize the peso, plus lower gold valuations,” Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said in a Viber message.

BSP Governor Eli M. Remolona, Jr. has said that they have been carrying out minimal interventions in the foreign exchange market amid the peso’s recent volatility.

For this year, Mr. Ravelas said debt servicing may continue to add pressure on the country’s GIR level, although inflows from remittances, tourism and the business process outsourcing (BPO) sectors may provide some buffer.

“Moving forward, expect a slight softening as debt servicing continues, but steady inflows from OFWs (overseas Filipino workers), BPOs, and tourism will keep our external position resilient.”

For this year, the central bank expects GIR to end at USD 110 billion, up from its previous forecast of USD 106 billion. — Katherine K. Chan, Reporter