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Central bank to launch new clearing house for gov’t

By Melissa Luz T. Lopez, Senior Reporter
THE CENTRAL BANK is looking to launch a new clearing house that will allow digital payments for government services, as part of a stronger push for online transactions.
Called the “PhPay,” BSP Deputy Governor Chuchi G. Fonacier said they are looking to roll out the third automated clearing house that will process payments for government services and even the state’s fund releases to individuals.
However, Ms. Fonacier said they are waiting for the Department of Finance (DoF) and the Bureau of Internal Revenue to set up a platform for e-invoicing, which would provide electronic receipts to users of the payment portal.
“We need electronic invoicing because once you pay, people are not comfortable if they don’t have a receipt,” the BSP official added, noting that trace numbers are usually not enough for customers.
The DoF originally started work for the PhPay clearing house under the Integrated Government Philippines program, which would also serve as the centralized online payment portal, transactions ledger and reconciliation system for e-payments to state agencies. This platform is expected to improve the ease of doing business in the country, as payments for permits and licenses can also be coursed here.
However, Ms. Fonacier said its full rollout depends on finalizing the rules for e-invoicing.
The central bank last year revealed plans to set up a new clearing house specifically for bills payment, which will include government services.
Once rolled out, the PhPay will follow the Philippine Electronic Fund Transfer System and Operations Network — a platform which compiles all interbank fund transfer instructions, runs a batch process, and credits the amount to the receiver by the end of the banking day.
Meanwhile, InstaPay processes real-time transfers worth P50,000 or lower, with the money sent to the destination account in a matter of seconds or minutes.
These clearing houses were opened in line with the BSP’s goal to raise the share of e-payments to 20% of all transactions in the Philippines by 2020, coming from a measly 1% share back in 2013.
The late BSP Governor Nestor A. Espenilla, Jr. previously said that he is specifically targeting to shift government payments onto digital platforms, which include the payout of worker salaries, tax collections, and even loan proceeds from state agencies.
The use of e-payments and online transactions is expected to fast-track access to money, and will therefore boost economic activity as funds are made available quickly.

Porn stars, gravediggers, gay beauty queens, and drug addicts featured in Sinag film fest entries

THE Sinag Maynila International Film Festival is back for its fifth year, promising to present “diverse and compelling” film starting April 4 in select cinemas. This year’s festival will have five full-length feature films, 10 short films, and five documentaries.
“This [year] marks the film festival’s fifth year and we’re happy to celebrate it alongside the centennial of Philippine cinema,” Wilson Y. Tieng, President and CEO of Solar Entertainment said in his remarks read by Solar Pictures General Manager Butch Ibañez during the film festival’s press launch on March 7 at the Podium in Mandaluyong City. “We’re very proud of Sinag Maynila’s humble contribution to the movie industry for the past five years, not just in recognizing Filipino talent but more significantly in pushing the boundaries of Philippine cinema.”
Sinag Maynila is the brainchild of Mr. Tieng and prominent Filipino director Brillante Ma. Mendoza, with the idea of creating a festival that “not only inspires but educates and enlightens Filipino movie audiences,” according to the film festival’s website.
“Sinag Maynila has come to represent the Filipino filmmakers’ dream of the world stage and as we continue to provide that unique opportunity, we hope for Philippine cinema catches the global interest it so deserves,” Mr. Tieng’s remarks continued.
This year, the five full-length films in competition include Zig Dulay’s Akin ang Korona, a comedy about a small local gay beauty pageant show whose organizers and the participants take too far; Ronald Carballo’s Jesusa, about the titular character who sinks into drug addiction.
Also in the lineup is Joselito Altarejos’ Jino to Mari, about two sex workers hired to do a pornographic film who are made to do acts they did not agree to. “[The film] posits the question, ‘if you take away a person’s dignity, what is left of them?,’” Mr. Altarejos said during the launch. He added that the film also explores how society views pornographic actors and sex workers.
Meanwhile, Daniel Palacio’s Pailalim tells the story of a gravedigger who is pushed to the limit when his daughter becomes critically ill and he is then forced to steal from a newly buried corpse. “This is a very delicate film. I hope the film serves its purpose and the voices will be heard,” Mr. Palacio said at the event.
Pailalim is a 2017 film and has already won a Special Mention, Fedeora Award at the 65th San Sebastian International Film Festival in Spain that year. Mr. Palacio said that he is happy the “film has come home” after doing the international film festival circuit over the past few years.
Finally, Ralston Jover returns to Sinag Maynila after winning four awards at last year’s festival for Bomba. Mr. Jover and Bomba actor Allen Dizon reunite for Persons of Interest, about a man with two personalities. “Persons of Interest tackles the dualities of life, heaven and earth, rich and poor and injustice and justice. But what if the truth hurts so much that you’d rather believe lies, especially if it concerns your loved ones?” said Mr. Jover.
Sinag Maynila is also presenting 10 short films: Bisperas by Ralph Quincena, Dana Jung by John Rogers, Dude Pare Bro by Lorna Cerdan, Kiss by Harlene Bautista, Kilos by Marjon Santos, Marian by Brian Patrick Lim, Memories of the Rising Sun by Lawrence Fajardo, Nagmamahal, Sal by Jeff Subrabas, Ngiti ni Nazareno by Louie Ignacio, and Panaghoy by Alvin Baloloy.
Competing in the documentary category are At Home by Arjanmar R. Rebeta, Entablado by Lie Rain Clemente and Nori Jane Isturis, Hope Spots by Joseph Dominic Cruz, Hyatt: Mga Kuwento, Lihim at Katotohanan by Jayvee V. Bucsit, and Tata Pilo by Dexter Macaraeg.
Mr. Mendoza said that this year’s crop of short films and documentaries is “amazing” and that the festival will be announcing the international jury members in the coming days.
“This year, our selection of films in competition in the full-length, short films, and documentary sections as well as our special screenings are diverse and compelling and we’re excited for the local and international audiences to appreciate a new take to the Philippines’ world,” said Mr. Tieng in his statement.
Sinag Maynila’s will open on April 3 with Lakbayan, the omnibus work probing the state of the Philippines by Mr. Mendoza, Lav Diaz, and National Artist for Film Eric de Guia (Kidlat Tahimik) which premiered at last year’s Busan International Film Festival.
The closing film will be Journey, an Asian Three-fold Mirror Project by the Japan Foundation and directed by Daishi Matsunaga, Degena Yun, and Edwin (an Indonesian who goes by one name).
The film festival will also hold a forum in April with Joanne Goh who is the Chairman of the Malaysia International Film Festival, and Young-woo Kim, the programmer of the Busan International Film Festival. There will also be a film editing workshop conducted by John Anthony Wong, managing director of Edge Manila Creatives. The festival will also be holding an environmental film screening and forum by The Plastic Solution, an environmental program whose aim is to create a plastic-free Philippines.
The film festival awards night will be on April 7. — Zsarlene B. Chua

Clark Water signs P535-million loan agreement with DBP

CLARK WATER Corp. has signed a term-loan agreement amounting to P535 million with the Development Bank of the Philippines (DBP), according to parent company Manila Water Co., Inc.
“The proceeds of the loan will be used to partially finance Clark Water’s Concession capital expenditure program,” the Ayala-led water concessionaire told the stock exchange on Monday.
The loan was signed on Monday by Clark Water — through Manila Water Philippine Ventures, Inc., which houses the listed company’s projects in the provinces.
“Clark Water is the concessionaire of Clark Development Corporation under a 40-year contract for the construction, management, operation and maintenance of the water and wastewater facilities in the Clark Freeport Zone concession area,” Manila Water said.
On Monday, shares in Manila Water dropped by 1.85% to close at P26.60 each.
The loan agreement follows Manila Water’s disclosure on Feb. 27 that its subsidiary Manila Water (Thailand) Co. Ltd. had signed a 5.30-billion Thai baht loan with the Bangkok branch of Mizuho Bank, Ltd. and Bank of Ayudhya Public Co. Ltd.
Last year, subsidiary Manila Water Philippine Ventures won 11 new projects. Its subsidiaries continued to post positive revenue growth, increasing 6% to P3.3 billion.
Overseas, Manila Water recorded its largest regional investment to date, with the acquisition of the stake in East Water. It also acquired a stake in PT Sarana Tirta Ungaran in Indonesia. — Victor V. Saulon

PhilJets acquires 3 helicopters

PHILJETS GROUP said it is expanding its fleet with the acquisition of three new helicopters this year.
In a statement on Monday, the company said it had ordered Bell 505 Jet Ranger X, a single-engine, four-seat aircraft which PhilJets is considering to be its new flagship helicopter.
“PhilJets is embarking on a new era of style, efficiency, enhanced customer satisfaction and competitiveness…. We are thrilled to operate the Bell 505…. It is the most cost-efficient helicopter in the Philippines thanks to its low operating cost,” PhilJets Chairman Thierry Tea said in the statement.
The new aircraft, which was bought through PhilJet’s parent company Starline Global Industries Group, will boost the company’s existing fleet of 10 helicopters and four business jets. Mr. Tea said they want to expand their fleet to 30 aircraft in the next three years.
“These additional helicopters will provide us with more capacities, flexibilities and incredible synergies. We are aiming to reach 30 aircraft including 20 helicopters in the next 3 years,” he was quoted as saying.
PhilJets Chief Executive Officer Willyn Villarica added, “With Bell’s incredibly reliable customer support, PhilJets trusts that the addition of these few more helicopters from Bell will strengthen our operations.”
The company said it has been “growing at a fast pace” the past four years with a 100% growth every year. It noted its revenues increased 25% in 2018, and its target is to build it up by 35% this year.
PhilJets offers charter flights to its clients for executive travel, aerial works, helicopter tour destinations and special occasions. It is under Singapore-based Starline Global Industries Group, which also owns PhilJets Aero Services, Inc. and PhilJets Aero Charter Corp. — Denise A. Valdez

New tile designs to be launched

MARIWASA SIAM Ceramics, Inc. is set to launch 106 new tile designs during the Philippine World Building and Construction Exposition (WORLDBEX), which runs from March 13 to 17 at the World Trade Center, Pasay City.
“For this year, as we upgrade our trend of automation and technology in our manufacturing line to create high definition and realistic texture on our tiles, we created Mariwasa 4.0 as our theme for the upcoming WORLDBEX,” Jakkrit Suwansilp, president of Mariwasa, said in a statement.
The new line includes Revitality, which features relaxing and therapeutic elements; Technique, which incorporates cultural and modern feels; and Wanderwall, which gives a high-class look. A new product feature is the R11 stone effect, which has a glossy finish and an anti-slip feature.
“Our designers travel to different places in the Philippines and abroad to look for inspiration and ideas that we can incorporate in the tiles. They also study tile trends to make sure we remain up-to-date and are able to offer our customers contemporary designs and features,” Mr. Suwansilp said.
The company will also launch its new product line for bathroom needs, the Mariwasa Sanitary Wares. — Vincent Mariel P. Galang

Rediscount loans climb

PESO rediscount loans increased as of February.

BANKS TOOK more loans out of the central bank’s rediscount window in February, with the amounts poured into capital purchases and import payments.
Peso rediscount loans reached P20.433 billion last month, rising from the P14.462 billion borrowed in January, the Bangko Sentral ng Pilipinas (BSP) announced yesterday. This is also higher than the P5.81 billion in credit lines secured in February last year.
The central bank’s rediscount facility lets banks get their hands on additional cash by accepting a lender’s collectibles as collateral for short-term credit. The banks can then use the fresh money supply — either in peso, dollar or yen — to hand out more loans for corporate or retail clients, as well as service unexpected withdrawals.
In a statement, the central bank said bulk of the borrowings were meant to support capital asset spending, which took 40.61% of the sum. This is followed by import requirements which took roughly a third of the sum, followed by permanent working capital (11.92%), goods trading (10.85%), and loans to real estate and other business activities (5.44%).
These brought the two-month rediscount tally to P34.895 billion.
The bigger rediscount lines come at a time when some industry players flag tighter money supply in the system. However, central bank officials have repeatedly said that the liquidity conditions remain ample. BSP Deputy Governor Diwa C. Guinigundo has said that the weekly oversubscriptions in their term deposit auctions show that banks are still sitting on excess cash.
Meanwhile, the dollar and yen rediscount window meant for exporters stood untouched, much like the trend observed for the past few years.
For this month, rates for rediscount loans remain steady after policy makers voted to keep benchmark yields unchanged during February’s rate-setting meeting.
Rediscount rates for peso loans stand at 5.3125% for loans maturing in 90 days or less, while those with a 91 to 180-day maturity are priced at 5.375%. These are based on the 5.25% ceiling of the interest rate corridor plus a premium.
The Monetary Board will conduct their second policy meeting next week, which will be led by new BSP Governor Benjamin E. Diokno.
Yields for foreign currency loans saw mixed movements, reflecting trends in global interest rates.
Dollar credit lines will come with an even lower rate of 4.61513% for one to 90-day loans; 4.67763% for 91- to 180-day loans; and 4.74013% for 181- to 360-day loans, the BSP said.
On the other hand, the rates for yen debts went up to 1.92167% for one to 90-day loans, 1.98417% for 91- to 180-day loans, and 2.04667% for 181- to 360-day loans. — Melissa Luz T. Lopez

Spotify, Google appeal ruling that boosted songwriter payments

SPOTIFY Technology SA and other technology giants appealed a ruling that increased the royalties they must pay to songwriters, a move that threatens to further damage the companies’ already-tenuous relationship with the music industry.
Songwriters celebrated last year when the Copyright Royalty Board (CRB) ruled that they will get at least a 15.1% share of streaming revenues over the next five years, a raise from the previous rate of 10.5%. The bump, which came in January 2018, was the biggest ever, the National Music Publishers Association (NMPA) said at the time.
But music-streaming services, most of which are either losing money or only eke out a small profit, warned the change would make it harder to operate. They also complain that the ruling was made without enough input from them.
The board’s decision “raises serious procedural and substantive concerns,” Spotify, Amazon.com, Inc., Alphabet, Inc.’s Google, and Sirius XM Holdings, Inc.’s Pandora said in a statement. “If left to stand, the CRB’s decision harms both music licensees and copyright owners.”
STREAMING SHARE
Songwriters have long complained they receive too small a share of sales from streaming, which now accounts for 75% of the business in the US — the world’s largest music market. The rates under discussion in this case govern payments from on-demand services such as Spotify and Apple Music, which make up the vast majority of streaming sales.
The technology companies waited until the last day to appeal the decision, undermining their recent efforts to court songwriters, said David Israelite, chief executive officer of the NMPA.
“I’m sure it was their strategy of how best to screw over songwriters,” Mr. Israelite said. “It pulls away the disguise of being friendly.”
Israelite said Apple is the one tech heavyweight that didn’t appeal the case. A spokesman for Apple didn’t immediately respond to a request for comment. — Bloomberg

Termite solution for homes

JARDINE DISTRIBUTION, Inc. (JDI) offers Total Termite Solution, which protects homes from the hazards of termite infestation.
Solignum can protect wooden furniture and structures against termite. It has insecticidal and fungicidal properties that can also work against fungi and wood-borers.
To prevent subterranean termites from entering your home, homeowners can use Soilguard, “an odorless water-based soil termiticide that creates a termite-lethal barrier that prevents termites from entering the structure.”
JDI’s line of Home Pest Solutions is available at leading supermarkets (Shopwise, Rustan’s, Wellcome) and DIY stores (Handyman, Ace, Citi, and Wilcon, among others) nationwide.

FWD Life partners with TrueMoney Centers

FWD LIFE Insurance has partnered with TrueMoney to make its low-premium insurance product available in over 3,600 of the former’s centers in the National Capital Region.
“Our partnership with TrueMoney is part of FWD’s goal to reach new and emerging segments, further expanding financial inclusion in the Philippines and supporting our vision to change the way people feel about insurance,” FWD Life Philippines President and Chief Executive Officer Peter Grimes was quoted as saying.
Set Ka Na is described as a “basic life insurance protection plan that provides annual coverage for death, disability, and accidental death.”
“At TrueMoney, we are committed to expanding the suite of affordable financial services available in our stores, most especially in hard-to-reach areas in the Philippines. FWD’s Set Ka Na insurance contributes in meeting this mission,” TrueMoney Philippines Chief Executive Officer Jacqueline Van Den Ende was quoted as saying.
FWD Life Insurance and TrueMoney are planning to expand its partnership to make Set Ka Na available in all TrueMoney Centers around the country by the end of 2019.

Fun dialed up to 11

Crackdown 3
Xbox One
CRACKDOWN was released with much fanfare in 2007. It wasn’t merely that Microsoft Game Studios bundled launch copies with multiplayer beta access to hotly anticipated Halo 3. More importantly, it was because the involvement of developer David Jones (the force behind sandbox giant Grand Theft Auto) heightened interest in the open-world action title. And he wasn’t attached just because he so happened to be head of Realtime Worlds; he conceived it and helped shepherd it through a five-year turnaround process that included shifting programming focus from the Xbox to the next-generation Xbox 360.
The result was a critical and commercial success that, simply put, had legs. Despite being on store shelves early in the year, Crackdown became — and, more importantly, stayed — top of mind for reviewers and gamers alike, making “Best of 2007” lists and garnering industry awards for its capacity to push the envelope in terms of gameplay and presentation. It was, as Jones envisioned, Grand Theft Auto, but better. And, as he also envisioned, the positive response led to the green-lighting of a sequel. Unfortunately, Realtime Worlds by then had other commitments, compelling Microsoft, which held its intellectual property rights, to commission another developer for the project.
When Crackdown 2 hit store shelves in mid-2010, it was met with a more modest reception relative to that of its predecessor. Perhaps because of the participation of former Realtime Worlds staff in its progression, it retained many of the elements that made Crackdown a hit. And perhaps because of the absence of Jones from the Ruffian Games team behind it, it likewise presented design changes that not a few quarters viewed in a less favorable light. Still, it was deemed good enough — and, of course, profitable enough — to keep the franchise going. That said, Microsoft figured Jones needed to be overseeing the next release from the get-go.
As things turned out, he did get on board for Crackdown 3 via Cloudgine and Reagent Games, companies he formed following his departure from Realtime Worlds. Announced at the Electronic Entertainment Expo 2014, it was envisioned to harness the potential of cloud computing to generate in-game models and environments. At the time, Sumo Digital was likewise tasked with providing the game’s campaign mode. Following delay after delay, however, the latter took over principal development, and, after a year at the helm, finally managed to bring it to fruition.
For gamers, the good news is that Crackdown 3 continues the series narrative. Picking up a decade from where Crackdown 2 left off, it has the Agency — the organization previously tasked with keeping order in Pacific City through the deployment of artificially enhanced soldiers — stepping in to stop terroristic Terra Nova from establishing a new world order. To do so, agents are deployed to New Providence, the stronghold of the supposedly humanitarian outfit, carrying out with the aid of Echo, the established local rebel group, missions aimed at eradicating the threat.
Just as crucially, Crackdown 3 displays all the core elements that have enabled the franchise to claim a loyal following. Of particular note, back is the “Skills for Kills” Campaign mode mechanic that increases the motivation of gamers to complete missions with a horde of weapons at their disposal, traveling around extremely expansive New Providence using any and all means of transportation they find. The more deaths they cause, the more they are able to level up their attributes and, in turn, gain access to new equipment.
Parenthetically, freedom of choice is the biggest draw to Crackdown 3; how objectives are met, as well as in what order they are met, depend entirely on player predilections. In this regard, it builds, and delivers on, its premise and promise of an open-world setting where anything can — and everything does — happen. As an aside, it amps up the independence factor in its Wrecking Zone multiplayer options; whether in the Agent Hunt or in the Territories milieu, gamers in teams of five obliterate enemies and, in the process, destroy everything in sight. Mindless fun? Sure, with the operative word being “fun,” dialed up to a rip-roaring 11.
If there’s any demerit to Crackdown 3, it’s in an apparent inability of the series to improve in look. For all the time between releases and notwithstanding pledges of maximizing the cloud-computing facilities of the Xbox One, it feels, well, dated. No doubt, the long gestation period and the late transfer of reins to Sumo Digital didn’t help. In any case, the latest saga of the Agency features not inconsiderable softness and lack of visual detail, giving the impression — no doubt unfair in the face of its myriad pluses — that those behind it left a lot of the console’s graphical power untapped.
On the flipside, Crackdown 3 does keep the action moving with nary a slowdown in play; frame drops are nonexistent even when the screen exhibits instances of frenetic mayhem. Whether or not the tradeoff should exist is subject to discussion. That said, there can be no discounting its capacity to deliver an excellent gaming experience. To this end, it’s aided in no small measure by a properly modulated audio mix. Sound effects are bombastic and expectedly over the top, and the music evokes the appropriate ambience. And precisely because the voice acting is first rate, the dearth of cutscenes and somewhat brief appearances of Terry Crews as the main character represent missed opportunities.
At any rate, Crackdown 3 ultimately manages to pay homage to its source material. It makes no pretensions on its roots and does well to preserve the legacy of the franchise. It doesn’t reinvent the wheel, but, then again, it didn’t promise to. Even as it seems to want to attract the more mature set with its treatment of its content, its immersive gameplay figures to reel in a wide swath of the gaming demographics. Bottom line, it deserves a place in the library of longtime fans of the series and newcomers alike.
THE GOOD:
• Continues the series narrative
• Retains core gameplay mechanics of previous releases
• Excellent sound mix
• Ramped-up fun factor
THE BAD:
• Visuals lacking sharpness and detail
• Story on the thin side, coming off as a missed opportunity
• Absence of innovation
RATING: 8/10
POSTSCRIPT:
The Dragon’s Lair Trilogy made its way to the Switch early this year, and perhaps the only surprise is the length of time it took to be ported over to Nintendo’s latest latest-generation console. The titles included in the bundle are considered classics by retro and contemporary gamers alike, never mind that Space Ace boasts of a narrative totally unrelated to Dragon’s Lair and Dragon’s Lair II: Time Warp. In part, it’s because the three make use of interactive animation developed via then-cutting-edge laserdisc technology. In larger measure, it’s due to the timeless nature of their gameplay mechanics, which offer predetermined outcomes propelled by quick-time events.
Considering how the three offerings in Dragon’s Lair Trilogy are best appreciated as movies requiring occasional, if precise, gamer participation, it’s just as well that they weave immersive tales. Dragon’s Lair has knight-in-shining-armor Dirk the Daring, called to action to rescue damsel-in-distress Princess Daphne from the clutches of the demonic dragon Singe. The direct sequel finds him traveling through time and doing battle against returning wicked wizard Mordroc to bring her royal highness back home with their children. Meanwhile, Space Ace focuses on debonair daredevil Dexter’s aim to save sidekick Kimberly and the rest of the world against the machinations of Commander Borf.
Despite its heavy reliance on familiar tropes to frame its plots, Dragon’s Lair Trilogy succeeds in keeping gamers glued to the Switch. That the included titles can each be finished in about the same running time as a feature-length film is a decided advantage; after all, there can be only so many QTE button presses before gamers tire of their necessary interventions. They likewise benefit immensely from the stylized look reminiscent of silver-screen world of creator Don Bluth. All told, the compilation is well worth its $19.99 list price on the eShop. (8/10)

Hong Kong tightens liquidity with $192-million peg defense

HONG KONG faces the likelihood of rising borrowing costs after the city’s de facto central bank intervened to defend its currency peg for the first time since August.
The Hong Kong Monetary Authority (HKMA) bought HK$1.51 billion ($192 million) of local dollars during London and New York trading hours after the currency fell to the weak end of its trading band, it said in a statement Saturday.
The move will reduce the aggregate balance, a measure of interbank liquidity, to a decade low of HK$74.8 billion.
While the size of the buying was small relative to some of the HKMA’s interventions last year, continued weakness in the currency may prompt the central bank to drain more liquidity. That would intensify pressure on home values in the world’s most expensive property market, and weigh on the city’s economy. Just 11 months ago the aggregate balance stood at about HK$180 billion.
“The Hong Kong dollar will remain under pressure in the near term, so the local authorities will intervene further to defend the peg,” said Irene Cheung, a senior strategist at Australia & New Zealand Banking Group. “Interbank borrowing costs will rise gradually due to the liquidity drainage, but they won’t spike as the scale of intervention will be smaller compared with last year.”
The Hong Kong dollar was little changed at HK$7.8497 per greenback as of 1:37 p.m. local time. The three-month interbank borrowing costs on the currency, known as Hibor, climbed the most since December, while the one-month tenor rose to the highest since Jan. 10 on Monday.
So far, the government — which spent years unsuccessfully trying to cool the housing market as the US held borrowing costs near zero — appears sanguine about the prospect of tighter liquidity.
The outflow of funds from the Hong Kong dollar is an “inevitable process” as the monetary environment normalizes, HKMA Deputy Chief Executive Howard Lee said in the statement. He said it wouldn’t be surprising if the Hong Kong dollar again weakened to the bottom of its trading band, and the HKMA “stands ready” to defend it.
Hong Kong effectively imports US monetary policy thanks to the currency peg, even if local rates don’t always track those across the Pacific.
While last year’s interventions helped the one-month Hibor climb to a decade-high of about 2.4% in December, the cost of borrowing has tumbled recently. The rate fell to as low as 0.91% in February, compared with 2.49% for US Libor. The gap makes it profitable to short the Hong Kong dollar, which has been near the weak end of its band for weeks.
Abundant liquidity in the currency market, weak demand for loans and a lack of large-scale initial public offerings in Hong Kong have contributed to the rate gap, Lee said.
More intervention is possible, though the security of the peg isn’t in doubt, said Bipan Rai, head of North American foreign-exchange strategy at Canadian Imperial Bank of Commerce.
“Reserve levels have been built up significantly over the past decade and the HKMA still has an ample amount of reserves to defend the USD/HKD range for now,” Rai said.
“It’ll likely be tested a few times, which may see further intervention. But any talk of the peg giving way is an extreme long shot.” — Bloomberg

How PSEi member stocks performed — March 11, 2019

Here’s a quick glance at how PSEi stocks fared on Monday, March 11, 2019.

 
Philippine Stock Exchange’s most active stocks by value turnover — March 11, 2019.