Gold and other reserve assets declined while cash, deposits and securities rose. The central bank says the remaining stock covers 6.3 months of imports and related payments.
Philippine gross international reserves fell to $99.997 billion at the end of September, down from $104.846 billion in August. The reduction was about $4.85 billion, or 4.6%. Preliminary figures from the Bangko Sentral ng Pilipinas (BSP) show that the previous month’s increase was reversed.
The central bank’s statement attributes the decline to four factors: its net foreign exchange operations, lower valuations of gold and foreign-currency assets, government withdrawals to service external debt, and other net government foreign-currency withdrawals. The change in reserves therefore includes more than dollars sold into the market.
Which reserve components declined?
The detailed table accompanying the release shows that not every component fell. Other reserve assets recorded the largest decline in dollar terms, dropping from $15.47 billion to about $10 billion. Gold’s dollar value fell by $1.29 billion. Currency and deposits, however, roughly doubled, while securities holdings rose modestly.
| Component | August 2026 | September 2026* |
|---|---|---|
| Gold | 19.109 | 17.822 |
| Securities | 64.043 | 64.439 |
| Currency and deposits | 1.538 | 3.083 |
| Other reserve assets | 15.471 | 9.998 |
| Total gross reserves | 104.846 | 99.997 |
*September figures are preliminary. The total also includes the reserve position in the IMF and Special Drawing Rights (SDRs). Figures shown are rounded.
Other reserve assets are not a single foreign-currency account. The BSP includes overnight repo-pool investments, amounts due from or to brokers, accrued interest receivables, and investments in the Asian Bond Fund and Bank for International Settlements Investment Pool. A decline in that category alone cannot explain how the country’s overall reserves were used.
The $4.85 billion fall is not all intervention
A change in the gold price can alter the dollar value of a central bank’s holdings even if the physical quantity stays the same. Foreign-currency assets can also produce valuation changes. Although the BSP lists foreign exchange operations as a reason for the decline, its statement does not assign a separate amount to each driver or isolate how much of the gold decline came from prices.
A gold sale cannot be inferred. The $4.85 billion reduction in the reserve stock does not establish that the BSP sold that amount of dollars or gold to support the peso. The statement combines valuation effects, government payments and foreign exchange operations.
UnionBank chief economist Ruben Carlo O. Asuncion told Manila Bulletin in its October 8 report that the decline in other reserve assets “does not necessarily point to a specific intervention activity.” He said the available figures were insufficient to conclude that the BSP had sold gold specifically to support the peso.
The distinction between a change in the reserve stock and currency sales also arose in India’s reserve decline in the week ended September 25. The dollar value of India’s gold holdings also fell. The RBI reports weekly while the BSP reports monthly, so the reporting periods need to be kept distinct when comparing the changes.
How much import and debt cover remains?
The BSP says reserves cover 6.3 months of imports of goods and payments for services and primary income, down from 6.6 months in August. Coverage of short-term external debt fell from 331.4% to 315.7%, or approximately 3.2 times.
That debt measure includes more than loans originally borrowed on short maturities. It also counts principal on medium- and long-term external loans of the public and private sectors falling due within the next 12 months. The table uses outstanding debt and its payment schedule as of June 30, 2026. In foreign exchange markets, the repayment schedule therefore matters alongside the reserve total; treating all gross reserves as freely spendable cash would misrepresent the figure.
The central bank considers the remaining reserves sufficient for external payments and protection against economic shocks. Both coverage measures nevertheless show a smaller cushion than in August. September’s preliminary amounts may be revised. The next release should be checked for revisions to the previous reading. That keeps the next month’s comparison on the same data vintage.
