INVESTOR confidence in the Philippines helped propel the country’s foreign reserves to a 16-month high in January, an analyst said.
Gross international reserves (GIR) rose to $112.51 billion at the end of last month from $110.8 billion in December, the Bangko Sentral ng Pilipinas (BSP) reported late on Friday.
It was also the highest since September 2024’s record high of $112.71 billion, BSP data showed.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the increase was mainly driven by higher gold holdings, which rose by 11.2 percent to a record $20.7 billion.
This was up 76 percent from a year earlier as global gold prices climbed 13.3 percent in January and hit a record $5,595.47 per ounce on Jan. 29, he noted.
“GIR also went up in view of the successful Republic of the Philippines global bond sale worth $2.75 billion at lower borrowing costs versus earlier indicative yields, with total bids more than double at $5.95 billion, reflecting continued international investor confidence on Philippine credit quality,” Ricafort added.
The government returned to the international capital markets last month, raising $2.75 billion from a triple-tranche dollar bond sale amid renewed global tensions.
“Notwithstanding elevated market volatility and geopolitical uncertainties, the transaction achieved tight pricing, a reflection of the Republic’s standing as a benchmark for high-quality emerging market credit and signals robust investor confidence...,” National Treasurer Sharon Almanza said following the staging of the offering.
Finance Secretary Frederick Go also said “the exceptional reception for our first international bond issuance of 2026 demonstrates the trust global investors place in the Philippines.”
The Bangko Sentral, meanwhile, said the latest GIR level “provides a robust external liquidity buffer” enough for 7.5 months’ worth of imports of goods and payments of services and primary income.
It is also enough to cover 4.1 times the country’s short-term external debt based on residual maturity, defined by the BSP as outstanding external debt with original maturity of one year or less, plus principal payments on medium- and long-term loans of the public and private sectors falling due within the next 12 months.
The central bank said GIR is considered adequate if “it can finance at least three months’ worth of the country’s imports of goods and payments of services and primary income.”
It is also considered sufficient “if it provides at least 100-percent cover for the payment of the country’s foreign liabilities, public and private, falling due within the immediate twelve-month period.”
GIR consists of the BSP’s foreign investments, gold, foreign exchange, reserve position in the International Monetary Fund and special drawing rights.
