Philippines’s total internationalNational Reserve (GIR) inches Central bank gold holdings hit record highs in August.
Preliminary data from Bangkok Sentral NG Pilipinas (BSP) showed that as of the end of August, USD reserves rose 0.46% to USD 100.9 billion as of the end of August.
In the year, US dollar reserves fell by 1.8% from US$1007.857 billion in August 2024.
“The Philippines’ international reserves increased in August 2025, due to higher incomes from global gold prices and investments in Sentral Ng Pilipinas in Bangkok,” the central bank said in a statement.
An adequate foreign exchange buffer can protect the country from market volatility and ensure debt repayment is possible in the event of a downturn.
BSP data shows that the US dollar reserve level as of the end of August is enough to cover 3.4 times the short-term foreign debt of countries based on remaining maturity.
This is also equivalent to the payment value of 7.2 months of services and services and first income, which is more than twice the three-month standard.
“The latest GIR levels provide a strong external liquidity buffer,” the central bank said.
International reserves are foreign assets of the central bank, mainly investments in foreign-issued securities, foreign exchange, currency, gold, etc.
These are supplemented by claims from the International Monetary Fund (IMF) in the form of reserves and special mapping rights (SDRS).
Foreign investment in BSP was $85.852 billion as of the end of August, down 0.4% from the end of July to $740 million, according to the central bank. In the year, it fell 7%.
The value of central bank gold holders climbed 5.4% to $14.523 billion at the end of August to $783 million. As of August last year, it jumped 42.1% from $10.221 billion. Gold tends to perform well during periods of economic uncertainty.
As of August, foreign exchange holdings rose 8.3% to $897.8 million from $828.9 million last month. The year increased by 13.7%.
Starting last month’s $729 million, the country’s reserves in the IMF also grew to $736.4 million at a price of 1% to $736.4 million. In the year, it rose 1.4%.
SDR (or the amount the Philippines can hit from the IMF’s reserve currency basket) increased by 0.2% per month to $3.89 billion as of August to August, to $3.895 billion. In the year, it grew 1.3% from $3.847 billion.
Meanwhile, net international reserves rose 0.46% from US$100.4 billion to US$100.9 billion by the end of July. These refer to the difference between the reserve and reserve liabilities of the BSP (including short-term foreign debt) and the IMF’s credit and loans.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the monthly growth in gold holdings is due to rising gold prices in the world market.
“(This is) primarily due to the latest month of gold holdings increased by $740 million, or 5.4%, while a record high of $14.5 billion, as world gold prices rose 4.8% in August 2025, and by September 5, 2025, a record high of $3,600 per ounce, to $3,600,” he said.
However, Mr Ricafort pointed out that the decline in foreign investment was offset by a decline in foreign investment due to market volatility and higher U.S. tariffs that came into effect on August 7.
“In the next few months, the country’s GIR can still receive continued growth in the country’s structural inflows (Overseas Filipino workers) remittances, BPO (business process outsourcing) revenue and exports (although offset by imports)” he said.
Mr Ricafort said the government’s plan to reduce foreign borrowing could also affect GIR levels in the coming months.
“The GIR is still relatively high, at $100.9 billion … in three years [and] “It is still possible to strengthen the outside position of the country,” he said.
BSP expects US dollar reserves to reach US$1004 billion this year. US$100.5 billion in 2026. Kkchan
