PH Foreign Reserves Rise to $105.5B in May 2025 on Gold Value Surge

The Philippines’ gross international reserves (GIR) rose to $105.5 billion in May 2025, up from $105.3 billion in April, thanks largely to a surge in global gold prices, the Bangko Sentral ng Pilipinas (BSP) reported.

This marks the 20th consecutive month the country’s reserves have stayed above the $100-billion mark—signaling strong external liquidity despite a decline in foreign direct investments and global market uncertainties, including U.S. tariff pressures under President Donald Trump.

According to the BSP, the increase was driven mainly by valuation gains in gold holdings, income from overseas investments, and foreign currency deposits from the national government.

Economist Michael Ricafort of Rizal Commercial Banking Corp. noted that the BSP’s gold assets rose 2.9% month-on-month to $13.7 billion. He attributed this to record-high world gold prices, which hit $3,500.10 per ounce in April 2025, amid a flight to safe-haven assets.

While the GIR increase is a positive sign, foreign direct investment inflows dropped significantly in February 2025, hitting a 10-month low due to geopolitical uncertainties and tariff-related concerns.

The central bank emphasized that the current reserves are equivalent to 7.3 months’ worth of imports and payments, and can cover 3.7 times the country’s short-term external debt—well above the international adequacy threshold.

Net international reserves also increased slightly to $105.34 billion from $105.26 billion in April, further reinforcing the country’s financial buffer.