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Hot money inflows mark 3-year high

By Melissa Luz T. Lopez
Senior Reporter
MORE flighty capital entered the Philippines in March to log a three-year high, the central bank noted on Thursday, as foreigners invested in the country’s maiden panda bonds and in local stocks.
Foreign portfolio investments posted a $1.132-billion net inflow last month, turning around from February’s $545.14-million and March 2017’s $459.86-million net outflows, the Bangko Sentral ng Pilipinas (BSP) said.
These placements are dubbed “hot money” since such funds enter and leave the country with ease.
Net investments bagged in March were the biggest since February 2015 which saw $1.19 billion in such inflows, according to central bank data.
Foreign investors placed in $2.469 billion last March, more than double the $1.029 billion a month ago and the $1.374 billion a year ago.
These placements were partly offset by $1.337 billion in outflows that compared to $1.574 billion plucked out in February 2018 but were still smaller than March 2017’s $1.834 billion.
One analyst attributed the pickup in investments to the Philippines’ maiden bond sale among Chinese investors.
“Panda bonds raised about $230 million. So, the third week inflows bump can be attributed to the said inaugural issuance,” said Ruben Carlo O. Asuncion, chief economist at the Union Bank of the Philippines.
The government sold the renminbi-denominated papers on March 20. Mr. Asuncion said the bigger inflow recorded in early March may have been due to corporate bond sales.
Big-ticket securities issued earlier this year include debt papers worth $500 million sold by Petron Corp. and $400 million by port operator International Container Terminal Services Inc.
Investments in peso-denominated debt instruments accounted for more than half of hot money flows to yield $1.2 billion in net inflows, the BSP said. Some 40.9% of foreign funds went to publicly listed firms, for which transactions resulted in $240-million net outflows.
Transactions in peso-denominated government securities accounted for 8.5% and resulted in $122-million net inflows.
The Netherlands, the United Kingdom, the United States, Norway and Hong Kong were the biggest sources of capital during the month.
About 85.9% of the outflows returned to the US.
The BSP expects $900 million in net outflows this year, bigger than the $205.03 million that left the country in 2017.

With no ‘endo’ EO, Palace to back bill’s OK

By Camille A. Aguinaldo
PRESIDENT Rodrigo R. Duterte will certify a bill in Congress that will give workers greater security of tenure instead of issuing a controversial executive order (EO) that organized labor had hoped would ban all forms of contractual employment schemes, a Cabinet secretary said on Thursday.
Labor Secretary Silvestre H. Bello III said Mr. Duterte will certify a proposed security of tenure bill pending in the Senate, an act that will speed up enactment by allowing legislative approval on second and third reading in the same day.

“After going through the three proposed EO to be signed by the President, the consensus was that instead of the President signing an executive order on the issue of contractualization, he will instead certify as a priority bill the bill that is now pending in the Senate on security of tenure,” Mr. Bello said during a press briefing in Manila.
Mr. Bello said the decision was made at a meeting on Friday last week with Executive Secretary Salvador C. Medialdea.
Also on Thursday, Malacañang confirmed that the President will no longer sign the EO, saying that it was “better to leave the matter of ‘endo’ (end of contractualization) to Congress.”
“The position of Secretary Bello now, which I think is the position of Malacañang as well… let’s see what kind of legislation Congress will finally be approved, noting that the matter is now pending in the Senate alone, because the House already passed its version,” Presidential Spokesperson Harry L. Roque, Jr. said in a regular press briefing.
The bill being referred to is Senate Bill No. 1116 or the proposed End of Contractualization Act of 2016 introduced by Senator Emmanuel Joel J. Villanueva, chairman of the Senate committee on labor, employment and human resources development. The measure is currently in the committee level.
Its counterpart measure at the House of Representatives, House Bill No. 6908, was approved on third and final reading on Jan. 29.
The Senate bill seeks to tighten rules on contractualization and simplifies the classification of employees to regular and probationary. It also prohibits labor-only and manpower contracting and defines unfair labor practices in a contracting or subcontracting arrangement.
In a statement, Mr. Villanueva said: “We will release the committee report as soon as we finished circulating the draft to the senators for inputs.”
“The President’s certification will definitely help in the passage of a new law governing ‘endo.’”
Sought for comment, Employers Confederation of the Philippines President Donald G. Dee said the group has been studying the Senate bill.
“We’ll be discussing it among ourselves then with the senators once we have established what are the provisions that are objectionable to us,” he said in a phone interview.
Labor groups have been pressing Mr. Duterte to make good on his 2016 election campaign promise to ban all forms of contractual employment schemes, a move employers say would dissuade prospective investors and scare away those already here. Cabinet men have lately said that any EO can only amplify what is already in the law and that any substantial change — as sought by organized labor — can be achieved only through legislation.

Century-old prison is now a museum

By Louine Hope U. Conserva
Correspondent

ILOILO CITY — What used to be the Iloilo provincial jail is now a regional extension of the National Museum and is being prepared to house five galleries showcasing the rich history and culture of Western Visayas.
The Iloilo provincial government officially turned over to the National Museum what is now called the Western Visayas Regional Museum, located along Bonifacio Drive, on April 11, coinciding with the 117th founding anniversary of Iloilo province.
The century-old facility was built in 1911 and stopped functioning as a jail in 2006 after the prisoners were transferred to the new provincial jail in Pototan town.
The provincial government spent P19 million to retrofit the old structure while the National Museum allotted P80 million to convert the jail into a museum.
National Museum Director Jeremy R. Barns led the blessing and turnover ceremony and also made the formal declaration of the building as an “important cultural property.”
Museum Declaration No. 22-2017 states that “the old Iloilo provincial jail is a cultural property enjoying the presumption of law as an important property; possesses exceptional cultural and architectural significance relative to the local areas, history and culture; and merits official recognition as an intrinsic part of the heritage and patrimony of the Filipino people…”
The declaration also indicates that the building represents a state-of-the-art prison as it remains substantially intact since it was built in 1911.
In an interview with the local press, Mr. Barns said the declaration would give the building official status as an “exceptional” property in the region.
“When you say an ‘important cultural property,’ it is outstanding but not necessarily unique but it is worth drawing attention to. That is why we declare it to signal the public that there is something exceptional about this — either historically, artistically, culturally, and technologically,” he said.
Other important cultural properties in Iloilo include the old Jaro Municipal Hall and the Camiña Balay Nga Bato.
“The declaration would also allow the National Museum to prioritize the building if ever it will be destroyed by a calamity,” Mr. Barns added.
The Western Visayas Regional Museum is the fifth regional extension of the National Museum. The others are located in Ilocos, Bohol, Butuan, and Zamboanga.
It will exhibit hundreds of archaeological artifacts, fossils, and textiles, among other cultural relics.
Mr. Barns said it will also house the Oton Death Mask, a pre-Hispanic gold mask found in a grave site in Oton town, which is currently kept in the vault of the National Museum in Manila.
The first gallery, which will showcase the region’s textile, will open in May in line with National Heritage Month.
Admission will be free to complement the National Museum’s mandate of educating the public.
Iloilo Gov. Arthur D. Defensor Sr. said the building reflects the glorious past of the province and the entire region.
Mr. Defensor said, “It is historical because, imagine, it is an old provincial jail. It is like in London in the United Kingdom. The structure that houses the crown jewels in England can be found in the fort.”

Gabby Lopez retires as ABS chair, selects cousin Mark as successor

ABS-CBN Corp. Chairman Eugenio “Gabby” L. Lopez III has stepped down from his position, making way for Martin “Mark” L. Lopez, who served as the company’s chief technology officer.
In a move by the network to focus on its pivot to digital, Mr. Gabby Lopez was elected chairman emeritus during the organizational meeting of the company held on Thursday, April 19. He was chairman of the board of directors since 1997, and also served as chief executive officer from 1997 to 2012.
Mr. Gabby Lopez, who turned 65 last August and is the second chairman emeritus in the company’s history, will remain as a director.
He succeeded his father Eugenio “Ka Geny” M. Lopez, Jr. in 1997 and also served as CEO of ABS-CBN from 1997 to 2012.
Mr. Gabby Lopez led the network when it diversified into ventures including interactive and online media, international and domestic cable and satellite channels, broadband services, sports programming, digital TV, among others. It was also under his leadership that ABS-CBN launched cable TV service SkyCable, global subscription channel The Filipino Channel, and video-on-demand streaming sites TFC.tv and iWant TV. He also pursued the launch of ABS-CBN TVplus, the country’s first-ever digital terrestrial television (DTT) product.
“As every athlete knows, there comes a time when inevitably it’s time to let go of the reins and allow others to take over. My father has always said ‘broadcasting’ is for the young. After all, today’s digital world is vastly different from the world I managed,” he said in his speech during the annual stockholders’ meeting of the company on April 19. He added that if the board decides, he can still serve in a “consultative capacity.”
Mr. Mark Lopez, cousin of Mr. Gabby Lopez, previously held the position of vice-president and chief information officer at Manila Electric Co. He concurrently served Meralco CIO and president of e-Meralco Ventures until 2010.
ABS-CBN said in a statement that Mr. Mark Lopez set the company’s strategic directions and ensured “operational excellence in information and communications.”
“He spearheaded ABS-CBN’s system modernization, highlighted by the migration to the cloud and the automation of content creation and delivery to various media platforms. He was also responsible for ABS-CBN’s migration to HD and the completion of the DTT infrastructure,” ABS-CBN said in a statement.
The company booked a net income of P3.16 billion for 2017, 10% less than the company’s P3.52-billion in earnings in 2016, which was election year.
Shares in ABS-CBN went down 2.08% or P0.60 to end at P28.20. — Patrizia Paola C. Marcelo

Decades-old Saudi cinema ban ends, public screenings start

RIYADH — Saudi Arabia launched its first commercial movie theater on Wednesday, ending a nearly 40-year ban on cinemas under a push by the crown prince to modernize the deeply conservative Muslim kingdom.
A red carpet invitation-only gala event attracted senior government officials, foreign dignitaries, and select industry figures to watch Marvel’s superhero movie Black Panther on a 45-foot screen at a converted symphony concert hall in Riyadh.
Tickets will go on sale on Thursday for the first public viewings on Friday, according to Adam Aron, chief executive of operator AMC Entertainment Holdings.
“Saudis now are going to be able to go to a beautiful theater and watch movies the way they’re supposed to be watched: on a big screen,” he told Reuters ahead of the screening.
The smell of buttery popcorn filled the air as confetti rained down through the multi-story atrium where Aron and Saudi Minister of Culture and Information Awwad al-Awwad announced the launch and proceeded into the 450-seat hall.
The opening marks another milestone for reforms spearheaded by Crown Prince Mohammed bin Salman to open the country culturally and diversify the economy of the world’s top oil exporter.
The prince, 32, has already eased restrictions in the last two years, including on public concerts, women driving, and gender mixing. The kingdom held its first-ever fashion show last week with a women-only audience.
Many Saudis have rejoiced at the end of the cinema ban, sharing praise and pictures of Prince Mohammed on social media.
Others expressed confusion at what they consider a government flip-flop, with one tweeting on Wednesday, “Remember you will stand in front of God… and you will bear the sins of all those who watched the movies.”
Some religious conservatives view cinema and acting as inconsistent with Islam.
There has been little apparent resistance to the social reforms, which seemed unthinkable just a few years ago, though the space for criticism is also limited. Several prominent clerics were arrested last year in an apparent bid to silence dissent.
BUILDING A FILM INDUSTRY
Among Wednesday’s moviegoers was Princess Reema bint Bandar, a second cousin of Prince Mohammed, who brought her 16-year-old son to experience what she called “an historical moment.”
The kingdom shuttered cinemas in the early 1980s under pressure from Islamists as Saudi society embraced a severe form of Islam.
Saudis have nonetheless been avid consumers of Western media and culture. Hollywood films and television series are widely watched at home and private film screenings have been largely tolerated for years.
In 2017, the government said it would lift the ban in part to retain money that Saudis currently spend on entertainment during trips to Dubai, Bahrain, and elsewhere.
To serve a population of more than 32 million, most of whom are under the age of 30, the authorities plan to set up around 350 cinemas with over 2,500 screens by 2030, which they hope will attract nearly $1 billion in annual ticket sales.
A source told Reuters last month that theaters would not be segregated by gender like most other public places in Saudi Arabia.
Awwad, the culture minister, told Reuters on Wednesday that they would be similar to cinemas around the world. Initial screenings are likely to be for families, with occasional ones for bachelors.
The extent of censorship was not clear but a Saudi official said the same versions of films shown in Dubai or Kuwait will be suitable for Saudi Arabia. Two scenes of kissing appeared to have been cut from the Black Panther screening.
Asked about possible conservative backlash to cinemas, Awwad said the government was focused on creating investment opportunities.
“For those that would like to come and enjoy watching the movie at the movie theater, they are more than welcome,” he said. “And for those who don’t want to watch movies at all, it’s also their personal choice.” — Reuters

Q2 hiring outlook positive amid strong growth — Monster.com

EMPLOYERS are expected to remain positive about hiring in the Philippines in the second quarter because of strong economic growth and investment, online hiring firm Monster.com said.
Monster.com Chief Executive Officer for Asia Pacific and the Middle East Abhijeet Mukherjee said in a statement that this was “no suprise” as the investment outlook remained upbeat.
“Job-generating foreign direct investment, a key economic driver for the Philippines, also witnessed strong growth in January. This allows for businesses to expand and create more job opportunities,” he added.
“We can likely expect positive hiring trends in the quarter ahead.
Mr. Mukherjee said the process of digital transformation “will likely boost job creation, salaries and training opportunities, pointing towards even more promising hiring growth prospects ahead.”
The Monster Employment Index (MEI) showed that online-based recruitment activity in January and February rose 13% and 17% year on year, respectively.
The MEI gauges online postings for jobs, covering various industries and occupations.
Hiring activity in the retail sector in February rose 29% year on year and was up 2% from January.
Education, advertising, market research, public relations, media and entertainment hiring activity rose 25%, followed by logistics-related industries at 20%.
Job postings for Business Process Outsourcing, on the other hand, contracted 7% in February, after a 5% fall in January.
By occupation, human resoures and administration saw a 29% increase in hiring activity in February.
This was followed by finance and accounts, up 26%. Postings in occupations related to purchasing, logistics, supply chain management, sales and business development rose 25%.
Postings for customer service professionals contracted 5% year on year in February. — Anna Gabriela A. Mogato

LTFRB halts Grab’s P2/min. charge

THE LAND Transportation Franchising and Regulatory Board (LTFRB) has ordered transport network company (TNC) Grab Philippines (MyTaxi.PH, Inc.) to suspend its P2 per-minute waiting time charge.
The LTFRB ordered the ride-sharing company to immediately suspend the charge until further order from the Board.
The issue stemmed from the remarks of PBA Representative Jericho Jonas B. Nograles, who earlier said Grab owes its riders P1.8 billion for the last five months due to “illegal” P2 per-minute charges.
Grab said it will file a motion for reconsideration of LTFRB’s order suspending the imposition of P2 per minute fare component, noting that the charge is legal and its drivers will not earn enough without it — which can consequently result to fewer vehicles.
“If the P2 per-minute fare component is stopped, Grab said drivers will not earn enough and will be left with no option but to leave their job as a TNVS [transport network vehicle service], resulting in even fewer vehicles for the riders,” Grab said in a statement.
“If this happens, it will take longer for riders to get a ride, and if there are not enough cars, surge may go up. Other passengers booking from far locations may be left unallocated.”
Grab had said it is allowed to unilaterally change fares based on the Department Order 2015-011 by the then-Department of Transportation and Communication which says “fares are set by the TNC and is subject to oversight by the LTFRB in cases of abnormal disruptions from the market.” It also said that they informed the agency about the said fare last August.
“This unilateral fare-setting prerogative was taken away in 2017 in a new department order but fares set before that will remain and only future adjustments are covered,” country head Brian Cu said in a statement. “The 2015 order did not require TNCs to file petition on fares; neither were we required to inform LTFRB. Even so, we still informed LTFRB during a technical working group meeting and in an official e-mail.”
The company admitted on April 18 that the increase was not communicated to riders, but said the final fare was still reflected in the app when a rider tries to book a ride.
Last week, the LTFRB on Wednesday also ordered Grab Philippines to lower its surge rate to 1.5x from 2x.
Board Member Aileen Lourdes A Lizada said this is “while the petitions for accreditation of other TNCs are being processed.”
The LTFRB earlier this week accredited taxi-hailing company Hirna Mobility Solutions, Inc. and ride-sharing company Hype Transport Systems, Inc. — Patrizia Paola C. Marcelo

Warner Bros.’ $1-B Abu Dhabi theme park to open in July

ABU DHABI — Abu Dhabi hopes the opening of a $1-billion Warner Bros. theme park in July will help it in its bid to nearly double the number of tourists visiting the emirate over the next few years.
Oil-rich Abu Dhabi is investing billions of dollars in tourism, industry and infrastructure to diversify its economy away from oil.
It is already home to the Louvre Abu Dhabi, Formula 1 Etihad Airways Abu Dhabi Grand Prix, Ferrari World and the Yas Water Park. Two more museums — the Guggenheim and the Zayed National Museum — are being built as well as a SeaWorld theme park.
The Warner Bros. park will be an added attraction, but with neighboring Dubai already a leading tourist destination and given the huge investment in the theme park, returns may not be immediate.
“The theme park is a long-term play, we have a sustainable business plan,” Mohamed Khalifa al Mubarak, chairman of Miral, the developer, told reporters on Wednesday, adding that Abu Dhabi and Dubai were complimentary destinations with different theme parks.
Abu Dhabi attracted 4.8 million tourists in 2017 and targets 8.5 million visitors by 2021, according to the emirate’s department of culture & tourism.
Features of the 1.65 million-square-foot Warner Bros. park on Yas island will include a DC Metropolis, Gotham City, Cartoon Junction, Dynamite Gulch, and a Warner Bros. Plaza.
“We have worked with Miral to faithfully bring iconic franchises such as DC Entertainment, Looney Tunes and Hanna-Barbera to life in a truly immersive and authentic environment,” said Pam Lifford, president, Warner Bros. Consumer Products. — Reuters

Cebu Pacific’s new aircraft to push Davao expansion

By Carmelito Q. Francisco, Correspondent
DAVAO CITY — Budget airline Cebu Pacific (Cebu Air, Inc.) is looking to expand its services to and from the Davao International Airport here with the delivery of three new Air 321 CEO planes in the coming weeks.
“We will evaluate whether there are possible new (local and international) routes that we can serve,” Ma. Rosario L. Lagamon, Cebu Pacific corporate communications director, told BusinessWorld on Wednesday on the sidelines of an agreement signing for the Visit Davao Summer Festival 2018.
Ms. Lagamon said the three new aircraft, among the 45 expected for delivery within the next five years, will already be used for some of the existing 10 Davao routes.
Demand for flights to Davao has been increasing, she said. “Even the A330 that seats 436 is always full… We change some of the aircraft (to Davao) that seats more people using the same slot in Manila with bigger aircraft so (we) can fly more people into Davao.”
“In terms of cargo, Davao is a very big thing. The total volume (in and out of Davao) reached 15,000 tons in 2017,” she added.
Cebu Pacific currently has 148 weekly flights between Davao and nine local destinations, and a lone international route, Singapore.
Ms. Lagamon said the Davao airport, which the airline declared as its third hub in 2008, accounted for more than 12% of the 19.7 million passengers it flew in 2017.
As part of the summer tourism campaign for Davao, Ms. Lagamon said the company is bringing digital “content creators” from Singapore and the United Arab Emirates to experience the city and other parts of the region.
“Davao and adjacent provinces have so much to offer tourists… We want people to spread the word and dispel any notions they may have about Mindanao in general. We strongly feel that positive word-of-mouth is integral to promoting the region, especially for foreign tourists,” she said.
The airline official also said that they are assessing the push from the Department of Tourism and local stakeholders to launch new international routes.
Arturo M. Milan, president of the Davao City Chamber of Commerce and Industry, Inc., earlier said airline companies should consider servicing new routes in Asia, particularly Japan.
“I believe there already is a good market for the Davao-Japan route,” said Mr. Milan as he noted that the governments of both countries have been actively strengthening linkages.
Davao City Mayor Sara Z. Duterte-Carpio and other local officials are in Japan this week upon the invitation of the Japan International Cooperation Agency (JICA) to discuss “urban planning and infrastructure development,” the city government said in a press statement. — with a report from Maya M. Padillo

Movie tickets now sold on RWM app; Ultra fancy cinema also launched

RESORTS WORLD MANILA (RWM), recently unloaded the update to its mobile companion app which includes features such as the capability to buy tickets for Newport Cinema movies as well as providing information about RWM promos, dining spots, and Newport Performing Arts Theater shows.
“When we first came out with the mobile app, we were trying address [functions] to be able to actually get to mobile… it was a natural progression and we keep on updating the app as the technology progresses,” Jay Padua, RWM director for digital channels, told BusinessWorld shortly after the launch on April 16.
The RWM Mobile Companion app has been on the Google Play Store since 2014 and as of press time, has had around 50,000 downloads.
The original app functioned more to inform the user about the property and was without the cinema ticket booking capability.
Mr. Padua added that the new update included a more “easy-to-navigate interface.”
But even before the app introduced the new feature, cinemas under the Megaworld Lifestyle Malls (Lucky Chinatown cinemas, Venice Cineplex, Southwoods cinemas, and Eastwood cinemas) already offers online ticket booking via blockbusterseats.com.
“The number of people getting tickets online are still small but we’ve seen a constant lift, so we continue pushing,” Mr. Padua said.
“Aside from the convenience of early reservations and cashless payments, moviegoers no longer have to line up at the box office… all they need to do is pay, scan, and watch,” he explained in a company release.
People booking online can pay using their credit cards, they will then be given a QR code which serves as their virtual ticket which is scanned at the cinema entrance.
ULTRA CINEMA
Along with the launch of the updated app, RWM also introduced the likewise updated Ultra Cinema 1 meant to guarantee “the most luxurious movie viewing experience possible,” said the release.
The new cinema includes personal butler service, free-flowing popcorn and soda fountain drinks, and semi-enclosed leather reclining seats equipped with USB ports and LED lamps.
Ultra Cinema tickets cost P520.
Premium movie merchandise is also available at Newport cinemas and other Megaworld malls beginning with merchandise from Marvel’s The Avengers: Infinity War. Mr. Padua said that this tie-up is one of many for the group. — Z.B. Chua

Investor urges Facebook to set up risk oversight

AN INSTITUTIONAL investor that wants Facebook to set up a risk oversight committee asked fellow shareholders on Tuesday to back the proposal, highlighting investor concerns over the company’s handling of controversies such as the recent data privacy row.
Trillium Asset Management, which owns about 73,000 shares of Facebook, Inc., said existing risk oversight structures at Facebook appeared to lack a “dedicated focus.”
Facebook has faced public outcry and intense political scrutiny since it was disclosed that the personal information of several millions of users was harvested by the political consultancy Cambridge Analytica.
Menlo Park, California-based Facebook has also been criticized for its role in Russia’s alleged influence over the 2016 US presidential election.
“The sheer volume, magnitude, and frequency of Facebook’s controversies strongly suggests that the company’s whack-a-mole approach is insufficient — Facebook needs to institutionalize stronger risk oversight mechanisms,” Trillium said in a letter here to fellow Facebook shareholders.
Trillium’s proposal first came in a regulatory filing on Friday.
Facebook, at the time, appeared to oppose the proposal, saying it would be inefficient to form a separate oversight committee, given that many of its board members were already overseeing risk-related matters.
“We believe that our board and committees have sufficient time and resources to address risk oversight matters along with their other responsibilities,” Facebook had said.
A Facebook spokeswoman maintained that response on Tuesday.
The social networking giant’s lack of attention to risk management has eroded shareholder value, Trillium said, pointing to Facebook’s warning last week that new investments in security will “significantly” impact future profits.
Facebook has lost nearly $47 billion in market value since the Cambridge Analytica revelations first surfaced last month. — Reuters

Bangko Sentral trims next week’s term deposit offer due to holidays

By Melissa Luz T. Lopez, Senior Reporter
THE CENTRAL BANK has trimmed the volume for next week’s term deposit auctions, in anticipation of upcoming holidays which could leave banks opting to hold more cash.
Term deposits to be offered by the Bangko Sentral ng Pilipinas (BSP) on Wednesday will be reduced to P90 billion, down by P20 billion from this week’s P110-billion offer.
Broken down, auction amounts were lowered for the one-week and two-week tenors. Only P40 billion will be issued under the seven-day term, down from this week’s P50 billion. The volume for the 14-day term deposits will also be slashed to P30 billion from P40 billion for the April 25 exercise.
Meanwhile, the central bank will still float P20 billion under a 28-day term for the fourth straight week.
BSP Governor Nestor A. Espenilla, Jr. said the cut in the auction amounts is “temporary,” as the reduced volumes are timed ahead of upcoming holidays.
Financial markets will be closed on May 1 in observance of Labor Day. May 14 will also be a national holiday for the barangay and Sangguniang Kabataan elections.
The amounts will be “back to usual” after the break, Mr. Espenilla said in a WhatsApp message to reporters.
The term deposit facility (TDF) is currently the central bank’s primary tool in capturing excess funds in the local financial system. The BSP expects to keep market rates closer to the 3% benchmark rate by paying margins to banks who decide to park unused cash under the window.
Market rates usually drop if banks are sitting on idle funds.
The BSP is also relying on the weekly TDF auctions to mop up additional liquidity after the reserve requirement ratio imposed on universal and commercial banks was lowered to 19% of deposits starting March 2.
Banks wanted to place P112.07 billion under the three instruments this week, lower than the P133.034 billion tenders received a week ago but a tad higher than the P110 billion offered by the central bank.
Wednesday’s auction saw banks preferring the seven-day instruments, which resulted in a slight undersubscription for the 14-day tenor. Yields saw mixed movements as average rates for the one-week and two-week tenors climbed, while the 28-day notes saw a slight drop in returns.

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