Foreign reserves hit record high $112.7 billion

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

March 9, 2026 | 12:00am

MANILA, Philippines — Gross international reserves (GIR) climbed to a new record high in February, supported largely by higher gold valuations and steady external inflows, reinforcing the country’s buffer against global financial volatility.

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed that GIR rose by $105 million or 0.1 percent month on month to $112.72 billion as of end-February. Year on year, GIR rose by about five percent from $107.39 billion.

It also surpassed the previous record of $112.71 billion posted in September 2024, reflecting continued inflows despite bouts of global market volatility.

The latest level of reserves is equivalent to about 7.5 months’ worth of imports of goods and payments of services and primary income, and covers roughly 4.2 times the country’s short-term external debt based on residual maturity.

RCBC chief economist Michael Ricafort said the increase was driven largely by higher gold holdings, which surged by 91.7 percent to a new record of $23.1 billion from $12.05 billion in February last year.

The jump came as global gold prices reached a record $5,595.47 per ounce on Jan. 29, before easing slightly to $5,278.93 by end-February.

Foreign exchange holdings also rose by 62.2 percent to $1.31 billion year on year. However, the gains were partly offset by a decline in foreign investments, which fell by 7.2 percent to $85.65 billion amid heightened volatility in global financial markets.

Ricafort said geopolitical tensions since the start of the year, including developments involving Iran, Greenland and Venezuela, have prompted investors to shift toward safe-haven assets such as gold.

He added that the country’s reserves were also supported by the national government’s successful $2.75-billion global bond issuance in January.

The proceeds from the foreign borrowing can be added to the country’s reserves and balance of payments as inflows, given the long-term nature of the bonds.

The strong reserve buffer also gives the BSP room to smooth excessive movements in the foreign exchange market, Ricafort said.

BSP Governor Eli Remolona Jr. earlier said the central bank has intervened in the currency market in small amounts to curb volatility, particularly during periods of peso weakness.

Remolona said the BSP’s intervention strategy focuses on dampening sharp swings rather than defending a specific exchange rate level.

Ricafort said the country’s ample reserves would help support the peso against speculative pressures and provide the BSP with sufficient firepower to intervene in the currency market if needed.