The Philippines' balance of payments (BoP) surplus widened to over $3 billion in June, significantly narrowing the BoP deficit in the first half of the year, according to central bank data.
The country's BoP position remained in surplus for two consecutive months, with a surplus of $3.403 billion in June, the largest monthly BoP surplus in nearly two years.
A BoP surplus indicates that more funds entered the country than it spent, while a deficit shows that the country spent more than it received. June's surplus brought the Philippines' BoP deficit to $3.877 billion in the first half of the year, narrower than the $7.28-billion gap as of May and the $5.588-billion deficit in the same period last year.
The central bank noted that the country's trade imbalances and tighter financial conditions will continue to strain the country's external position until next year, with a projected BoP deficit of $10.7 billion or -2.1% of gross domestic product (GDP) by end-2026.
The country's gross international reserves (GIR) reached $104.745 billion in the first half of 2026, marking a three-month high or since the $106.636 billion as of the first quarter.
The increase in GIR was driven by the National Government's net foreign currency deposits with the central bank and the central bank's net earnings from its foreign investments, but was tempered by downward valuation adjustments and the National Government's drawdowns on its foreign currency deposits.
The central bank's gold holdings jumped by 24.58% to $17.194 billion at end-June from $13.802 billion last year, and its reserve position in the International Monetary Fund (IMF) amounted to $724.6 million, with special drawing rights (SDRs) declining by 0.75% to $3.915 billion.
The central bank's foreign currency and deposits plunged by 48.35% to $2.298 billion in the first half from $4.449 billion in the comparable year-ago period, but its securities were valued at $72.037 billion, slipping by 5.73% from $76.413 billion last year.
The central bank said the country's end-June GIR level remains adequate, covering about 3.7 times the country's short-term external debt based on residual maturity, and translating to 6.8 months' worth of imports of goods and payments of services and primary income.
The BSP sees its foreign reserves settling at $104 billion this year, lower than the $110.8 billion it held in 2025.
The central bank's GIR allows the country to finance imports and foreign debts, maintain the stability of its currency, and safeguard itself against global economic disruptions.
The country's GIR provides sufficient foreign currency to meet its import needs and service its external debt obligations, and serves as a buffer against external economic shocks.
