Philippine Central Bank Solely Manages National Gold Reserves

MANILA – The Bangko Sentral ng Pilipinas (BSP) announced on Monday that it exclusively manages the Philippines’ gross international reserves (GIR), which include gold. The central bank’s primary goal is to ensure the stability and convertibility of the Philippine peso and to fulfill any anticipated foreign currency demands. The BSP emphasized that the GIR is strictly used for meeting the country’s foreign exchange needs and no other purposes. This statement came in response to allegations by former President Rodrigo Duterte, who claimed that the family of President Ferdinand R. Marcos Jr. had misappropriated and sold the nation’s gold reserves. The BSP clarified that its role includes managing the country’s external accounts, which involves buying and selling gold as part of its regular operations. In 2024, the GIR reached USD106.3 billion, an increase from USD103.8 billion the previous year. The BSP also noted that it maintains a portion of its reserves in gold to hedge against fluctuations in the market prices of other assets. The central bank adjusts its gold holdings to maintain an optimal level, following standard portfolio management practices. Gold prices typically move inversely to other assets, providing a hedge against price drops in the reserves. However, the BSP pointed out that gold can be volatile, yields minimal interest, and incurs storage costs, which is why central banks are cautious about holding too much gold.