Fresh highs in gold reserves propelled the Philippines’ gross international reserves (GIR)—the country’s stock of foreign currencies—to a 13-month high, the strongest level since October 2024.

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed the country’s GIR expanded to $111.1 billion at end-November, surpassing the previous month’s high of $110.2 billion.

The continued improvement since July is attributed to higher global gold prices, despite a slight easing in the central bank’s earnings from its investments.

Gold reserves stood at $18 billion, setting a new record level and surpassing the all-time high set in October.

The GIR includes the BSP’s reserve assets, such as foreign investments, gold, foreign currency, its reserve position in the International Monetary Fund (IMF), and Special Drawing Rights (SDR).

According to the BSP, the current reserve level provides a “robust” external liquidity buffer, enough to cover 7.4 months’ worth of imports and payments for services and income.

GIR acts as a country’s backup fund to pay for imports and foreign debts, support the local currency, and protect against global economic shocks. The BSP also noted the current GIR is sufficient to cover short-term foreign debt by 3.8 times.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., believes the current $112.7-billion record high in GIR could be breached sooner, given the strong recent performance.

He said the continued rise will be driven by “a record amount of gold holdings amid new record high world gold prices in recent months,” complemented by inflows from overseas Filipino worker (OFW) remittances, business process outsourcing (BPO) revenues, tourism receipts, and sustained foreign direct investment (FDI) inflows.

“Also, bigger foreign borrowings in amount and share of total borrowings for 2026 could be added to the GIR on a cash flow basis,” Ricafort added.

John Paolo Rivera, senior research fellow at the state policy think tank Philippine Institute for Development Studies (PIDS), called the current dollar stock “a helpful cushion for the economy,” which has seen a slowing trend, partly due to “ghost” infrastructure projects. Growth averaged five percent following a sharp slowdown to four percent in the third quarter.

Rivera noted a new record in GIR is possible by year-end, but it hinges on factors like sustained gains in global gold prices, stronger export earnings, steady remittances and services inflows, and limited reserve drawdowns by the BSP.

“If external headwinds—such as higher global rates or a trade slowdown—intensify, or if import and funding outflows accelerate, GIR may stall or drop,” Rivera cautioned.