The Bureau of the Treasury disclosed that the Philippines’ running debt balance ballooned to a new record high of over P18 trillion at the end of March 2026, as the peso’s weakness against the US dollar increased the value of the state’s foreign currency-denominated obligations.

BTr data showed the national government’s outstanding debt reached P18.49 trillion, up 1.81% from P18.16 trillion at the end of February.

BTr attributed the increase primarily to the revaluation impact of peso depreciation against the US dollar, along with the net issuance of domestic securities.

Domestic debt increased to P12.53 trillion, up 0.44% from P12.48 trillion month-on-month on the back of the net issuance of government securities amounting to P46.72 billion.

Moreover, the peso’s depreciation contributed P8.68 billion to the peso value of foreign-currency-denominated domestic securities, according to the BTr.

External debt totaled P5.95 trillion, up 4.81% from P5.68 trillion, driven by depreciation of the peso, “which raised the peso value of foreign currency-denominated obligations by P299.50 billion, following a P3.039 weakening in the US dollar-Philippine peso exchange rate,” the BTr said.

The Treasury said the growth in foreign obligations was partially offset by the net repayments of P2.55 billion and downward revaluation of third currencies’ debt by P23.92 billion.

The government earlier said it would continue to prioritize borrowing from local sources to protect itself from international financial risks, with domestic borrowing making up the lion’s share of the total sovereign debt.