Philippines foreign reserves hit $105.3 billion in June

HIghest in 3 months

MANILA, Philippines — The country’s gross international reserves (GIR) inched up to a three-month high of $105.32 billion as of end-June, driven by fresh foreign currency deposits from the national government and steady income from overseas investments.

Based on preliminary data from the Bangko Sentral ng Pilipinas (BSP), the latest figure edged up from $105.18 billion in May and was 0.13 percent higher than the $105.19 billion recorded in June last year.

It is also the strongest level since March, when foreign reserves reached $106.67 billion.

“The Philippines’ GIR rose in June 2025 mainly due to foreign currency deposits by the national government with the BSP and income from BSP investments,” the central bank said in a statement.

The GIR level remains a solid external liquidity buffer, equivalent to 7.2 months’ worth of imports of goods and payments of services and primary income.

It also covers 3.3 times the country’s short-term external debt based on residual maturity, exceeding the international benchmark of at least 100-percent coverage.

Supporting the month-on-month uptick were stronger gold holdings, which rose by 0.6 percent to $13.8 billion in June from $13.73 billion in May. Foreign exchange reserves also surged by 73.9 percent to $1.24 billion from $712 million.

Special Drawing Rights remained flat at $3.89 billion. Meanwhile, foreign investments, which comprise the largest bulk of GIR, declined slightly by 0.55 percent to $85.66 billion from $86.13 billion.

GIR is the country’s main buffer against external shocks, ensuring sufficient foreign exchange for imports, external debt payments and currency stabilization. The latest figures reflect the continuing resilience of the country’s external position amid global market uncertainties.

Rizal Commercial Banking Corp. chief economist Michael Ricafort noted that the slight increase in GIR in June came after three straight months of decline.

“June GIR corrected slightly higher by $147 million month-on-month and $135 million year-on-year to $105.32 billion, snapping three months of declines,” Ricafort said.

The GIR was also supported mainly by gains in gold holdings as world gold prices hovered near record highs.

This reflected sustained investor demand for gold as a hedge against uncertainty, driven in part by the Israel-Iran conflict and the effects of protectionist trade policies in the United States.

However, the June reserves were still below the record $112.7 billion level in September 2024, before global markets were roiled by renewed geopolitical risks and the so-called ‘Trump factor.’