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Tag: Luz Wendy T. Noble
THE COUNTRY’S dollar reserves hit a new record at end-August on the back of gains from the central bank’s investments abroad. Gross international reserves (GIR) rose by 15% to $98.95 billion as of August from $86.03 billion a year earlier, data from the Bangko Sentral ng Pilipinas (BSP) released on Wednesday showed. GIR also climbed by 0.36% from the $98.6 billion logged at end-July. The end-August tally is already above the central bank’s $90-billion projection for this year. BSP Governor Benjamin E. Diokno last week said the country’s dollar reserves could go beyond $100 billion by year-end. Ample foreign exchange buffers protect the country from market volatility and ensure the country can pay its debts in the event of an economic downturn. “The month-on-month increase in the GIR level reflected inflows mainly from the BSP’s foreign exchange operations and income from its investments abroad,” the BSP said in a statement. Meanwhile, the rise was partially offset by foreign currency withdrawals use to pay debt obligations of the national government as well as revaluation losses from the central bank’s gold holdings amid a decrease in prices of the metal. The BSP said the end-August tally is equivalent to nine months of imports of goods and payments of services and primary income. It is also about 7.6 times the country’s short-term external debt based on original maturity and 4.8 times based on residual maturity. Broken down, gold reserves stood at $12.039 billion, 50.19% more than the $8.015 billion seen a year ago but down 4.41% from the $12.595 billion logged as of July. Gains from investments abroad, which made up the bulk of the reserves, jumped 12.1% year on year to $82.446 billion from $73.522 billion and by 1.56% from the $81.177 billion logged the month before. On the other hand, foreign currency deposits dropped by 9.27% to $2.505 billion from $2.761 billion in the same period last year. It also decreased by 12.62% from the end-end-July level of $2.867 billion. The country’s reserve position with the International Monetary Fund (IMF) rose by 33.8% to $753.7 million from $563.3 million a year ago and by 0.41% from $750.6 million the prior month. Special drawing rights — or the money the Philippines can tap from the IMF — stood at $1.209 billion, 3.51% higher than the $1.168 billion seen a year ago and up a tad from the end-July’ level of $1.168 billion. The continued rise in the country’s dollar reserves will help boost the peso, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message. “Stronger recovery of OFW remittances may also contribute to higher GIR to uncharted highs in the coming months,” Mr. Ricafort added. Cash remittances rose 7.8% year on year to a seven-month high of $2.783 billion in July, mainly fuelled by inflows from land-based overseas Filipino workers. However, the seven-month level of $16.802 billion was still 2.4% lower year on year. The BSP expects a 5% decline in cash remittances this year due to the coronavirus crisis. — L.W.T. Noble
YIELDS ON term deposits auctioned off by the Bangko Sentral ng Pilipinas (BSP) mostly fell on Wednesday ahead of the central bank’s maiden offering of securities on Friday.
SEXUAL offenders have exploited the coronavirus disease 2019 (COVID-19) pandemic, leading to a surge in online child pornography transactions during the lockdown, according to a study by the Anti-Money Laundering Council (AMLC).
THE Anti-Money Laundering Council (AMLC) said it will impose sanctions on organizations with lax internal controls against money laundering, including those that demonstrate shortcomings in meeting know-your-customer (KYC) rules and training standards.
THE GOVERNMENT should prioritize measures to contain the coronavirus pandemic as it looks towards economic recovery, with the Bangko Sentral ng Pilipinas (BSP) likely done easing policy to stimulate activity, the International Institute of Finance (IIF) said.
THE Bangko Sentral ng Pilipinas (BSP) will likely reduce rates by a further 75 basis points (bps) cut in the fourth quarter to provide support to the economy, amid constraints on the fiscal side of the economic stimulus program, Nomura Global said.
FURTHER outbreaks in countries hosting migrant workers could deepen the economic downturns there, threatening wages, jobs, and ultimately remittances, according to the International Monetary Fund (IMF).
VIRTUAL BANKS in the Philippines looking for growth opportunities must target the young and unbanked as well as small businesses, S&P Global Ratings said.
THE Duterte administration needs to put policy reforms in place to attract more foreign investments by end-2020, before the presidential election campaign gets underway, according to an analyst.
YIELDS ON the term deposits auctioned off by the Bangko Sentral ng Pilipinas (BSP) mostly inched up on Wednesday amid an increase in bond supply in the market, with the central bank set to make its maiden issue of securities next week.
THE PHILIPPINES and Bangladesh are the most exposed to a decline in remittances during the pandemic, in terms of number of households dependent on the inflows, a dependency which has increased due to the weak labor market, according to Fitch Ratings.
THE government targets to have five million Filipinos with personal equity and retirement accounts (PERA) in the next five years, as it launched an online platform to make it easier for them to invest.
THE current inflation environment will mean only marginal benefits from further rate cuts, a Bank of the Philippine Islands (BPI) economist said.
Filipinos are more inclined to use digital payments for business purchases amid a broader shift to that payment channel due to the coronavirus disease 2019 (COVID-19) pandemic, according to Visa, Inc.
THE REHABILITATION of Marawi can be supported by the establishment of Islamic lenders and banking units that have Shariah compliant mechanisms as this can aid small businesses and build infrastructure in the war-torn area, an official of the Bangko Sentral ng Pilipinas (BSP) said.
MOODY’S INVESTORS Service slashed its gross domestic product (GDP) forecast for the Philippines to -7% this year, after a deep recession in the first half dented hopes for a quick economic rebound.
THE Anti-Money Laundering Council (AMLC) said it has detected the use by foreign nationals of Filipino dummies in the retail industry to get around foreign-ownership restrictions.
YIELDS ON the term deposits auctioned off by the Bangko Sentral ng Pilipinas (BSP) rose on Wednesday following the wider budget deficit as of July amid expenses for the government’s pandemic response and declining tax revenues.
THE CENTRAL BANK is using a sandbox approach to support the growth of digital financial players in the “new normal” amid the coronavirus pandemic, said Bangko Sentral ng Pilipinas (BSP) Assistant Governor Iluminada T. Sicat.
THE high drop-out rate in the K-12 system has reset the school population to levels not seen in nearly a decade, economists from Ateneo de Manila University and the University of the Philippines said.
SMALL LENDERS expressed support for the central bank’s proposal to include sustainable financing as part of their compliance with the mandated credit under the Agri-Agra Law as this will help boost the capital of pandemic-hit businesses geared towards sustainability.
THE DECLINE in cash remittances due to the coronavirus pandemic will translate to lower consumer spending as well as demand, according to Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno.
THE CENTRAL BANK is looking to encourage lenders to build up their sustainable loans by counting these as part of the mandated Agri-Agra credit, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said.
THE central bank vowed to ensure financial stability in the market, as it raised the possibility that “systemic risks may materialize” due to the global recession.