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Lenovo calls for greater women participation in technology

THE Philippines must address a gap in women’s participation in the technology industry, an official of Lenovo Philippines said, pointing to the need for the government to work towards greater diversity.

Anna Maria M. Abola, commercial marketing manager at Lenovo Philippines, said that the industry is still male-dominated, although there has been some improvements.

She said the government should start campaigns and support human resources policies on diverse hiring.

“The other challenge also is really, stereotyping, and it’s still that mind-set that the male population can do it better, especially in the tech industry,” she said in an online video interview.

Biases against women must be addressed, which continue to exist despite equal representation within an organization, she said.

Ms. Abola leads local efforts in Lenovo’s Women in Leadership Development Programme, which achieved 20% female executive representation, and offers training and mentorship programs in the company.

Women in Asia are less likely to be offered a “challenging leadership role,” with 58% of them likely to receive such an offer compared with 77% of men, the Center for Creative Leadership found in a survey released this month.

The Philippines again topped a global survey on the role of women in senior management, with more women taking on top roles in mid-market businesses compared with 28 other economies, the Grant Thornton International’s 2021 Women in Business Report showed.

Filipino women took on 48% of senior leadership roles in mid-market businesses, up five percentage points from the previous year, when 32 economies were surveyed.

Globally, 31% of positions in senior management teams were held by women, higher than the 2020 figure. — Jenina P. Ibañez

Geared up for the ‘now normal’

Honda Cars Philippines leverages digital presence as it remains committed to serve the Filipino automotive market

Masahiko Nakamura, Honda Cars Philippines, Inc. president

LAST YEAR was a very difficult time for the automobile industry due to the pandemic, with the lockdown forcing dealerships to close and eventually causing dampened sales.

As it faced these challenges, however, Honda Cars Philippines, Inc. (HCPI) saw an opportunity to fast-track its strategy and operations, and prepare the company to serve consumers better in the ‘now normal.’

As HCPI’s President Masahiko Nakamura shared, Honda maximized its digital platforms in order to reach consumers even without them stepping into their showrooms.

“In June, we have launched our website’s new feature, Auto Loan Link page. In August, we have introduced our online dealership facility, VIRTUAL@Honda,” Mr. Nakamura said in an e-mail. “Through these efforts, we aim to provide mobility, convenience, and ease of ownership to Filipinos in order to improve their quality of life amidst the pandemic.”

The HCPI president recognized that because of the pandemic’s disruptions, how the automotive industry reaches consumers has already changed, largely through amplifying the online presence of industry players.

“The pandemic has challenged the whole industry to be innovative in creating strategies to reach out efficiently and effectively to the public and convey their target message through different ways without requiring physical presence,” Mr. Nakamura observed, citing virtual launches and showrooms as examples.

As the Philippine economy slowly bounces back amid the continuing battle against the pandemic, Honda hopes to do its share in helping revitalize the economy in the coming years as it keeps a steadfast commitment to serve the local market and to provide mobility for everyone.

“We have crafted different strategies in order to maintain comprehensive process to provide quality products and reliable after-sales services to our customers,” Mr. Nakamura said, adding that it keeps the safety of customers and associates their top priority by ensuring a safe and healthy environment within their dealerships and offices.

Mr. Nakamura also expressed his optimism on Honda’s growth prospects as they look forward to the expansion of the brand’s network with the opening of a new dealership, as well as the development of its product lineup with the launch of new models.

“We encourage all customers and fans to watch out for the latest news in the coming months on these exciting future endeavors of Honda this year,” he added.

Likewise, Mr. Nakamura has high hopes for the entire automotive industry in the country to continuously drive and bounce back in the near future.

“The fact is, we are all in this boat together and all industries, including ours, are doing its best to cope with the business challenges, posed by the ongoing pandemic,” Mr. Nakamura said. “What we can do now is to continue focusing on the things that we can control, and manage and mitigate the things that we have no control over.”

In addition, the HCPI president extends his gratitude to their Filipino customers for the continuous patronage to the brand, and he reaffirms Honda’s commitment to serve the market amid a disrupted landscape.

“Please know that we are fully committed and will continue to do our best to providing top quality products and excellent customer service,” he said.

Piña weaver wins global prize

ALREADY honored locally multiple times for her work, Aklan-based piña weaver Raquel R. Eliserio’s work is now honored internationally.

In February, she won the Global Eco Artisan Awards 2021 in the textile category. Organized by eco-artisanal fashion brand AGAATI, the award “recognizes, and promotes the best in eco-artisanal crafts created by makers from all over the world.” Her design, made from piña-woven fiber, won among entries from 31 countries.

It took two-months to weave her entry to the competition.

Aside from her victory in the international competition, Ms. Eliserio is also a consistent winner in the annual Lourdes Montinola Piña Weaving competitions organized by HABI, The Philippine Textile Council.

Born in Balete, Aklan, Ms. Eliserio grew up in a family of pineapple fiber weavers. Pineapple (piña) weaving is part of their community’s cultural heritage.

“I grew up seeing my grandparents doing this craft, from farming the Red Spanish pineapple plant, manually extracting the fibers from leaves, and then weaving it,” Ms. Eliserio told BusinessWorld in an e-mail.

As a child, the process of weaving piña fiber — which she referred to in the online interview as the “queen of Philippine textile” — fascinated her and she was encouraged to learn it.

The leaves of the Red Spanish pineapple are scraped by hand with shards of porcelain and sharpened coconut shell to produce the finest filaments of piña fiber, Ms. Eliserio explained.

“It is knotted by hand from end to end and by its thread sizes to make sure the quality of continuous knotted pineapple fibers for weaving,” she said.

The old tradition of suksuk or creating an inlay pattern, Ms. Eliserio explained, is a technique where “the warp is counted according to desired pattern and pulled up using cotton threads and numbered fern sticks.” (Warp threads run vertically, while the weft threads horizontally from the edge of the fabric.) More piña fibers are inserted through the warp and weft to create designs embedded in the fabric — this is used in lieu of embroidering the fabric. This process created the ecru tissue look of Ms. Eliserio’s winning design.

THRIVING THROUGH SUPPORT AND EDUCATION
The pandemic put a temporary stop to the weaving within their community. However, prior to the lockdown, Ms. Eliserio said that the main challenge for the industry was “how to make this modern world love the traditional crafts.”

Reintroducing piña weaving and sharing her skills through training and workshops have been part of Ms. Eliserio’s advocacy for the industry.

“I partnered with  different government agencies and private sectors to train different communities in Aklan,” Ms. Eliserio explained.

Through the National Commission of Culture and the Arts (NCCA) Enhanced School of  Living Tradition (SLT), Ms. Eliserio teaches local culture and traditions as a cultural master using non-formal and practical demonstrations.

“I [want to bring them back to] my childhood when colored synthetic threads were not available in the market and my grandparents only used the indigenous piña fibers to design the fabrics, she said.

Ms. Eliserio also participates in the National Museum of the Philippines’s Hibla ng  Lahing Filipino travelling exhibition which includes exhibits and demonstrations abroad.

As the winner of the Global Eco Artisan Awards 2021, Ms. Eliserio gains free promotion of her design and products, marketing on social media, as well as a design consultancy with the founder and design head of AGAATI Saloni Shrestha.

“Buying and supporting the weaves of different communities is how to make these kinds of culture and traditional weaving alive. It is also why we are always thrilled to continue the passion in our own  craft,” she said.

For more information on Raquel R. Eliserio’s products, visit https://www.facebook.com/raquelspinacloth. Michelle Anne P. Soliman

Rates of Treasury bills, bonds to rise further as virus cases surge

RATES OF government securities on offer this week are expected to climb further amid a fresh surge in coronavirus cases and rising US Treasury yields.

The Bureau of the Treasury (BTr) wants to borrow P20 billion via its auction of Treasury bills (T-bills) on Monday, broken down into P5 billion each via the 91- and 182-day debt papers and P10 billion from the 364-day securities.

On Tuesday, the BTr is looking to raise P30 billion from reissued 10-year Treasury bonds (T-bonds), which have a remaining life of nine years and three months.

Two bond traders said T-bill rates could move sideways to 5 basis points (bps) higher.

The first trader said rates of local government securities continue to track the sustained uptrend in US Treasury yields.

The yield on the benchmark 10-year US Treasuries breached the 1.7% mark to close at 1.74% on Friday, up 3 bps from 1.71% on Thursday. Week on week, the tenor rose by 10 bps from 1.64% on March 12.

Meanwhile, the second trader said rising coronavirus cases in the Philippines could boost demand for the short-term papers as investors turn to safe-haven assets.

“Inflation is still a concern and the depreciating peso might weigh on that while movements toward the long end of the curve may mirror that of rising US Treasury yields,” the second trader added.

New coronavirus cases in the country reached a fresh all-time daily high of 7,999 on Saturday, bringing the total infection count to 656,056.

The BTr last week raised P20 billion as planned via the T-bills from tenders worth P42.43 billion.

Broken down, it borrowed the programmed P5 billion in 91-day debt as bids for the tenor hit P13.458 billion. The three-month papers fetched an average rate of 1.232%, higher than the 1.139% seen during the March 8 auction.

It also raised P5 billion as planned via the 182-day T-bills from P8.632 billion in tenders. The average yield of the six-month papers spiked to 1.527% from 1.316% previously.

Lastly, the government made a full P10-billion award of the 364-day securities it offered, with demand reaching P20.34 billion. The one-year papers were quoted at a higher average rate of 1.99% against the 1.852% seen in the previous exercise.

Meanwhile, for the reissued 10-year bonds on offer on Tuesday, the first trader sees its average rate ranging from 4.5% to 4.55%, while the second trader gave a wider 4.45-4.7% forecast range.

The last time the Treasury offered the reissued 10-year T-bonds was at the Feb. 2 auction, where it made a full P30-billion award from P63 billion in bids at an average rate of 3.066%. The bonds carry a coupon rate of 2.875%.

At the secondary market on Friday, the 91-, 182-, and 364-day T-bills were quoted at 1.277%, 1.447% and 1.931%, respectively, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website. Meanwhile, the 10-year bonds fetched 4.4636%.

The Treasury wants to raise P160 billion from the local securities market this month, broken down into P100 billion in T-bills to be offered weekly and P60 billion via fortnightly auctions of T-bonds. — Beatrice M. Laforga

Philippine Jan.-Feb. meat imports decline 12.5%

MEAT IMPORTS in the first two months of the year fell 12.5% from a year earlier to 122,098.31 metric tons (MT), according to the Bureau of Animal Industry (BAI).

The BAI said over the weekend that meat imports fell mainly due to reduced volumes for chicken, lamb, turkey, and buffalo products, even as pork, beef, and duck imports rose.

Chicken imports totaled 34,948.28 MT, down 57.2% from a year earlier. 

Around 56.9% or 19,893.56 MT of the chicken meat imports came in the form of mechanically deboned meat (MDM), a raw material used by the food industry in canned goods and other processed meat products. Chicken MDM imports dropped 55.7%.

Pork imports rose 91.3% year on year to 58,757.07 MT, while beef imports rose 10.9% to 22,489.89 MT.

Buffalo meat imports fell 9.4% year on year to 5,713 MT; turkey imports fell 40.4% to 142.55 MT; and lamb imports fell 83.7% to 39.70 MT.

Duck imports rose 32.8% year on year to 7.82 MT.

The largest source of imports in the year to date was the US, which accounted for 19.6% or 23,928.47 MT.

Canada supplied 17.4% or 21,202.21 MT, Spain 13.2% or 16,079.54 MT, and the Netherlands 8.2% or 9,982.23 MT.

Jesus C. Cham, president of the Meat Importers and Traders Association, said in a mobile phone message that the jump in pork imports was due to high prices and tight supply of domestically-grown pork.

“There was a strong increase in pork imports — almost double. This is due to the high price and scarcity of domestic pork,” Mr. Cham said.

Pork products sold in Metro Manila recently touched highs of P400 per kilogram, which subsequently pushed the government to implement a price ceiling.

Executive Order No. 124 implemented on Feb. 8 limited the price of pork shoulder (kasim) to P270 per kilogram, pork belly (liempo) to P300 per kilogram, and whole chicken to P160 per kilogram.

The DA has estimated a pork supply deficit of 400,000 MT due to the African Swine Fever outbreak in domestic hog farms. 

It has petitioned to increase the pork imports Minimum Access Volume (MAV) import quota to 404,210 MT from the current 54,000 MT.

Pork imports within the MAV quota are charged a 30% tariff, while pork imports outside the quota must pay 40%.

Mr. Cham said the decline in chicken MDM imports indicates that meat processors are facing a raw material shortage.

“The lower economic classes will have less affordable choices.  A reduction of pork tariffs is needed to provide more affordable pork,” Mr. Cham said.

The DA also has a pending proposal to lower the tariff on pork imports within MAV quota to 5%-10%, and those outside the MAV to 15%-20%, as part of overall efforts to expand pork supply.

As of Jan. 1, the national hog inventory fell 24.1% year on year to 9.72 million animals, according to the Philippine Statistics Authority. — Revin Mikhael D. Ochave

PNB may sell nonperforming loans, assets

PHILIPPINE National Bank (PNB) is interested in tapping the provisions of the Financial Institutions Strategic Transfer (FIST) Law to clean up its balance sheet, an official said.

“As to the extent, that’s still being determined, but yes, we are interested in selling or transferring our nonperforming assets to take advantage of the benefits to capital,” PNB Executive Vice President and Chief Financial Officer Nelson C. Reyes said in an online briefing on Friday.

The bank is currently in the process of identifying eligible nonperforming loans (NPLs) and assets that can be transferred to FIST corporations that will be established under Republic Act No. 11523.

Siguro (Maybe) the expectation is for the preliminary list of these identified eligible NPLs will be completed some time during the second quarter,” Mr. Reyes said, noting they have started preparing even as the implementing rules and regulations of the new law are still underway.

Enacted in February, the FIST Law allows lenders to sell their NPLs and assets to FIST corporations and also grants tax exemptions for these transactions.

With many ailing businesses and as borrowers remaining cash-strapped due to the crisis, officials hope that financial institutions could be encouraged to lend once they clean up their balance sheets through the FIST law.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno earlier said the law could trim banks’ NPL ratio by 0.63 to 7 percentage points. The industry-wide NPL ratio stood at 3.61% as of end-2020.

Both the BSP and the Securities and Exchange Commission have circulated draft guidelines for feedback from concerned industries last month.

PNB’s NPL ratio stood at 6.93% as of end-2020, based on its audited financial statement. PNB Chief Executive Officer and President Jose Arnulfo “Wick” A. Veloso said their restructured loans made up 7.5% of their loan portfolio last year.

He said they will be refocusing their activities moving forward to respond to the changing business landscape caused by the pandemic, adding they will prioritize critical sectors in the new normal.

“These include projects covered by the ongoing infrastructure program of the government just focused on supporting economic recovery efforts. Because next year is an election year, we are expecting increased government spending to push the completion of these numerous infrastructure projects nationwide,” Mr. Veloso said.

He added they are also keen on extending credit to industries engaged in telecommunications, human health and social work activities, hospital activities, retail selling and supermarket, and manufacturing of food products.

PNB’s net income dropped 73.14% to P2.6 billion in 2020 from P9.68 billion in 2019 due to heightened loan loss provisions during the pandemic.

Its shares closed at P23.25 apiece on Friday, down by five centavos or by 0.21% from its previous finish. — L.W.T. Noble

Changing lanes and shifting gears

How a pandemic has changed the way we move (and live)

IT SEEMS a long time ago when we could just, on a whim, hop on a car, a motorcycle, a bus, a taxi, or a train — and simply go where we want to go without a care in the world.

Today we need to make sure that, even more than money, we shouldn’t leave home without a face mask, a face shield, and a bottle of alcohol or hand sanitizer. And we cannot go just wherever we please. In fact, if we can help it, we should all stay and work or do schooling at home — at least until this newly resurgent virus is brought under control.

Going out of town? You need an RFID tag. This new tollgate feature — fast-tracked by government — required toll operators to employ cashless transactions. The rationale is sound, even if the timelines dictated were so tight that horrendous lines appeared at most tollway entry points as motorists rushed to get their RFID stickers. More problems cropped up as some machines reportedly failed to read the RFID stickers or some motorists would drive up with no load on their RFID accounts, among other issues.

Then there are the travel permits and quarantine passes, the IDs, the contact tracing forms and QR codes, and what have you — whether you’re going out of town or just to the supermarket.

This pandemic has truly and totally disrupted mobility as we know it.

So, what do we do now?

Life goes on, and being mobile is still essential. We all still need to go out to buy essentials (even occasionally, for those who acquire their essentials via Grab Pabili or similar services) and many of us still need to go out to earn a living.

Buses, jeepneys, UV Express vans, and the MRT/LRT have limited seating due to physical distancing requirements between passengers. Tandem-riding on motorcycles was banned during ECQ but has since been allowed with varying restrictions over the last several months. Even tricycles are prohibited from having more than one passenger in the sidecar, even if it’s a parent and child.

The safest way, COVID-wise, to regularly commute therefore is via one’s own car or motorcycle. Needless to say, motorcycles sales, which have been on an upsurge even before COVID-19 struck, have maintained its growth through the pandemic. Unfortunately, the number of accidents, major and minor, involving motorcycles have also grown, perhaps due to the high number of people who are just learning how to ride and are already riding on busy thoroughfares, but also probably due to the higher number of riders out there. It’s a simple statistical fact: The more riders, the higher the probability of traffic incidents and accidents.

Unfortunately, motorists on four wheels are no exception. Many people are just learning how to drive and hitting congested roads without first gaining enough experience and expertise.

Many accidents, not caused by alcohol intake or reckless driving, are caused by simple driver error that would’ve been easily avoided by more experienced drivers.

Indeed, it’s a sobering or downright nerve-wracking world out there right now. And even if we can all manage to work or study from home, there are still issues with the mental and psychological effects that being cooped up inside a house — whether alone or with others — that must be dealt with.

Fortunately, there is a light at the end of the tunnel. This, of course, are the vaccines that will hopefully break this pandemic by making our immune systems better adapted to fighting off the virus. It will not completely eradicate the virus, but it will allow vastly more people (#SanaAll) to survive, and hopefully, thrive in a post-pandemic world.

Then perhaps we can all just jump in our shiny cars, vans, SUVs, or pickup trucks and head on out to the beach and other tourist destinations with families and friends.

With not a care in the world.

Rizal Park, Paco Park remain open for physical exercise

BECAUSE of the sudden increase in COVID-19 cases in Metro Manila, the National Parks Development Committee (NPDC) is adjusting visiting hours to Rizal Park and Paco Park, but the parks will remain open.

Starting Mar. 19 until further notice, both parks are limiting their operating hours to 6 to 10 a.m. They will only be open to park goers ages 18 to 65 who are engaging in physical exercise.

In accordance with the guidelines issued by the Inter-Agency Task Force for the Management of Emerging Infectious Diseases and the Department of Tourism, visitors must wear their face masks and face shields to be permitted entry inside the park premises. These personal protective equipment may only be removed during intense physical exercise and if able to maintain a distance of six feet from others. Park goers are encouraged to download and register with the StaySafe.PH mobile application to enable contactless contact tracing prior to entry to the two parks.

All would-be park goers are reminded to refrain from going to the park if they are feeling unwell, exhibit signs and symptoms of coronavirus disease 2019 (COVID-19), or if they have come in close contact with a person who has tested positive for or is suspected to have COVID-19. Marshals are also present on-site to assist park-goers if they begin to feel unwell within the premises.

Metro Manila fish prices stabilize, Agri dep’t says

FISH PRICES in Metro Manila have stabilized as closed fishing seasons ended and aquaculture producers filled in supply gaps, the Department of Agriculture (DA) said.

Agriculture Undersecretary Cheryl Marie Natividad-Caballero said in a statement that round scad, or galunggong, currently retails for P180 per kilogram, down from its previous price range of P260 to P280 per kilogram.

“Aquaculture… helped us augment supply during our lean months,” Ms. Natividad-Caballero said.

The DA said price monitoring indicates that tilapia and milkfish, or bangus, have remained at P120 per kilogram and P180 per kilogram.

“With the resumption of large supplies of fresh marine commodities in the market, our consumers now have more affordable fish to choose from and put on their tables,” Ms. Natividad-Caballero said.

Closed fishing seasons in major fishing grounds like the Zamboanga Peninsula have ended, reopening the supply pipeline for marine fish like galunggong.

According to the DA, the Philippine Fisheries Development Authority recorded 9,506.81 metric tons (MT) of fish unloaded at the Navotas Fish Port Complex during the first 15 days of March.

Marine commodities accounted for 5,743.44 MT, followed by frozen fish products at 2,282.49 MT, and aquaculture at 1,480.88 MT.

“Our abundance of supply now is perfectly in time with our urgent need to ramp up efforts to ensure the nation’s food security as we battle an even stronger challenge from the coronavirus disease 2019 (COVID-19) pandemic,” Ms. Natividad-Caballero said. — Revin Mikhael D. Ochave

Nickel Asia joins UN sustainability project

NICKEL ASIA Corp. said it had been accepted as a member of the global sustainability initiative called United Nations Global Compact (UNGC) that looks into a company’s commitment to factors, including human rights and the environment.

Nickel Asia said in a statement on Sunday that it presented its business approach and value system to UNGC in order to be considered as a member.

“This is a huge deal for all of us at Nickel Asia because it effectively binds us to the proverbial umbilical cord of what UNGC represents to the world,” Martin Antonio G. Zamora, Nickel Asia president and chief executive officer, said in the statement.

According to Nickel Asia, UNGC is a sustainability initiative that “supports global companies that are committed to responsible business practices in the areas of human rights, labor, the environment, and corruption.”

It added that UNGC member companies are expected to act in environmentally responsible ways in relation to climate change, water and sanitation, energy, biodiversity, food, and agriculture.

“Companies are also expected to recognize the link between environmental issues, and social and development priorities,” Nickel Asia said.

Jose Bayani D. Baylon, Nickel Asia vice-president for corporate communications, said the standard operation procedures in the company’s mining subsidiaries have been to prepare for the UNGC membership.

“Mining continues to fight in the reputation category and the UNGC will help demonstrate our track record as we publicly report on how effectively we manage environment, social and governance issues,” Mr. Baylon said in the statement.

Nickel Asia’s attributable net income for 2020 rose 51.9% year on year to P4.07 billion due to higher ore export prices.

The company’s total revenues rose 21.5% to P21.77 billion compared to P17.92 billion in 2019. It added that some 10 million wet metric tons (WMT) of nickel ore were exported last year, a 3.9% drop from 10.4 million WMT the year earlier. — Revin Mikhael D. Ochave

MG lines up easy ownership deals this month

MG PHILIPPINES offers deals comprised of cash discounts or low down payments on its portfolio of cars and SUVs through its “Onward and Forward With MG” sales promo. Through this campaign MG’s “modern, stylish, attainable, British-heritage offerings” are made more accessible to the Filipino motoring public.

Ongoing until the end of March, the promo allows buyers to get an MG vehicle for as low as zero down payment. Refer to the table below for details.

Every MG purchased from MG Philippines-The Covenant Car Company, Inc. (TCCCI) comes with a five-year/100,000-km (whichever comes first) vehicle warranty, and one-year free periodic maintenance service (PMS) on all brand-new vehicles purchased on or before Dec. 31, 2020; as well as free car tint and floor matting, three-year LTO registration, and third-party liability coverage.

Meanwhile the My MG mobile app allows owners to easily schedule vehicle servicing from their smartphones; MG Mobile Garage service caravan allows scheduled home vehicle repair services; MG Online Garage provides online technical vehicle consultations with MG service specialists; and MG Hero Services extends 24/7 roadside support through the MG Philippines hotline (+632 5328-4664).

MG Philippines has 36 operational dealerships in the following locations: In Metro Manila: Alabang, Araneta-Cubao, BF Parañaque, Commonwealth, Congressional, EDSA Centris, Makati, Marikina, North EDSA, Otis, Pasay, Sucat, Quezon Avenue; in Luzon: Bacoor, Batangas, Cabanatuan, Calasiao, Camarines Sur, Carmona, Dasmariñas, Lipa, Marilao, Pulilan, San Fernando, Sta. Rosa, and Taytay; in the Visayas: Bacolod, Bohol, Cebu-Mandaue, Iloilo, and Tacloban; and in Mindanao: Cagayan de Oro, Davao, General Santos, Valencia, and Zamboanga.

For more information, visit https://www.mgmotor.com.ph/dealers for a list of MG Philippines showrooms and their contact details, and browse through the site for more information about MG Philippines products and services.

Peso to weaken versus dollar as infections go up

THE PESO may continue to weaken against the greenback this week due to the surge in coronavirus infections which has forced the government to tighten restriction measures anew.

The local unit finished trading at P48.62 per dollar on Friday, appreciating by six centavos from its P48.68 close on Thursday, based on data from the Bankers Association of the Philippines. However, it shed 16.5 centavos from its P48.455-per-dollar close a week earlier.

The peso’s climb on Friday was supported by the downward correction in oil prices, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said.

Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the increase in daily COVID-19 cases drove market sentiment last week.

For this week’s peso-dollar trading, Mr. Asuncion said he expects investors to continue monitoring new infections.

The Philippines on Saturday logged 7,999 new cases, the highest daily increase since the pandemic started. This brought the tally to 656,056, of which 80,642 are active cases.

He added that a continued increase in US benchmark yields could also fuel risk-off sentiment that could cause the peso to weaken against the greenback.

US Treasury yields have been picking up in past weeks, with the benchmark 10-year notes and 30-year papers on Thursday fetching their highest yields since January 2020 and August 2019, Reuters reported. However, they marginally retreated by Friday due to the decline in oil prices.

For his part, RCBC’s Mr. Ricafort said the market will also watch out for the local central bank’s policy decision on Thursday for further signals on inflation expectations.

A BusinessWorld poll held last week saw 19 analysts expecting central bank policy makers to maintain the key rate at its all-time low of 2% at their meeting this Thursday. They said lower rates and fiscal measures from the government are increasingly necessary amid a supply side-driven spike in inflation.

The Bangko Sentral ng Pilipinas’ (BSP) Monetary Board left benchmark interest rates untouched at its Feb. 11 meeting but raised its inflation forecast for this year to 4% from 3.2% previously due to rising oil prices. The central bank last year slashed rates by 200 basis points to provide support to the virus-stricken economy.

Headline inflation stood at 4.7% in February, picking up from 4.2% in January 2021 and 2.6% in February 2020, the government reported earlier this month. It was also the fastest pace since the 5.1% print in December 2018.

Year to date, February inflation settled at 4.5%, beyond the BSP’s 2-4% target for the year.

BSP Governor Benjamin E. Diokno said earlier this month that the central bank is not inclined to tighten monetary policy yet as they see the uptick in inflation as “temporary,” with pressures coming from the supply side.

For this week, Mr. Ricafort gave a forecast range of P48.50 to P48.70 per dollar while Mr. Asuncion expects the peso to move within a wider band of P48.50 to P48.50 versus the dollar. — L.W.T. Noble with Reuters