BSP gets global recognition for reserve management

THE BANGKO SENTRAL ng Pilipinas (BSP) has received global recognition for its foreign reserves management model in the 2026 edition of Central Banking’s annual awards.

“The BSP was recognized for modernizing its approach to reserves management across multiple areas during the past year,” Central Banking said in a statement posted on their website on Thursday.

The publication lauded the Philippine central bank for improving its asset allocation framework, strategies for active risk-management, policies on external fund managers, as well as gold management and responsible investments.

The BSP’s move to diversify its international reserves also allowed it to receive the plum, Central Banking added.

“We continue to be prudent, risk-based and forward-looking in our reserve management,” BSP Governor Eli M. Remolona, Jr. said in a statement. “This is a vital step toward safeguarding price and financial stability.”

International reserves are the central bank’s foreign assets held mostly as investments in foreign-issued securities, foreign exchange and monetary gold, among others. These are supplemented by claims to the International Monetary Fund in the form of reserve position in the fund and special drawing rights.

As of February, the country’s gross international reserves (GIR) hit a fresh high of $112.72 billion, breaking the previous record of $112.707 billion at end-September 2024, based on preliminary BSP data.

The Philippines’ monthly foreign reserves level has consistently exceeded the three-month standard in terms of worth of imports of goods and payments of services and primary income.

The BSP has also maintained the GIR at a level between triple and quadruple the country’s short-term external debt based on residual maturity.

Meanwhile, in the same awards, US Federal Reserve Chair Jerome H. Powell was named the central bank governor of the year.

Central Banking also recognized the Central Bank of the United Arab Emirates for risk management, the Bank of England for transparency, the Hong Kong Monetary Authority for its communications campaign, the Central Bank of Bosnia and Herzegovina for its initiatives to strengthen financial stability, and the Crown Agents Investment Management for asset management.

HSBC, Amundi and the Latin American Reserve Fund were likewise awarded for their services to central bank clients. — Katherine K. Chan