The Philippines’ money in its savings, known as foreign reserves, grew bigger in February! The Bangko Sentral ng Pilipinas (BSP) reported that the country’s Gross International Reserves (GIR) reached $106.7 billion, a jump from $103.3 billion in January.
Why Did It Increase?
This rise happened because:
The government deposited more dollars into the BSP after successfully selling global bonds. The value of gold went up, making the BSP’s gold reserves more valuable. The BSP earned more money from its investments abroad.
Where Does This Money Come From?
Foreign reserves include:
Foreign investments – Money placed in other countries
Gold reserves – Stored gold that gains value when prices rise
Foreign exchange – Other countries’ money in the bank
IMF reserve positions – The Philippines’ share in the International Monetary Fund
Special drawing rights – A special type of global currency
What Does This Mean for the Country?
Stronger economy – The Philippines has enough money to pay for 7.5 months of imported goods and services.
Debt security – The reserves can pay for the country’s short-term debts almost 4 times over.
Global confidence – Foreign investors trust that the Philippines can handle its financial needs.
With gold prices at an all-time high ($2,956 per ounce as of Feb 24, 2025), the country’s reserves might continue growing. This helps keep the economy stable and strong
