MANILA — The Philippines maintained a strong external financial position in May, with gross international reserves (GIR) standing at $104 billion, while the country’s balance of payments (BOP) returned to surplus, the Bangko Sentral ng Pilipinas (BSP) said.
The reserve level remained sufficient to cushion the economy against external shocks and support the country’s foreign currency requirements, including imports and debt payments.
The BSP said the end-May GIR could cover 6.7 months of imports of goods and payments of services and primary income. The reserves could also cover 3.9 times the country’s short-term external debt based on residual maturity.
The central bank attributed the slight movement in reserves mainly to the national government’s use of foreign currency deposits to service external debt, downward valuation adjustments in the BSP’s gold holdings and foreign currency-denominated assets, and the BSP’s foreign exchange operations.
These factors were partly offset by fresh foreign currency deposits from the national government and income generated from the BSP’s overseas investments.
Despite global economic uncertainties, the country’s reserve position remained a key safeguard against market volatility and external financial pressures.
Meanwhile, the Philippines posted a $131 million balance-of-payments surplus in May, helping narrow the cumulative deficit to $7.3 billion in the first five months of 2026, down from $7.4 billion recorded in January to April.
The balance of payments measures the country’s financial transactions with the rest of the world, including trade, investments, and remittances.
The BSP said the year-to-date deficit reflected the country’s continued trade gap and net outflows from foreign portfolio investments.
However, steady inflows from overseas Filipino remittances, foreign borrowings by the national government, earnings from trade in services, and foreign direct investments helped offset some of these pressures.
The latest figures underscore the continuing role of overseas Filipinos, investors, and service exporters in supporting the country’s external accounts amid persistent trade challenges
