BSP sets new rules on forex transactions

 Economy
Nov 072013
 
BSP sets new rules on forex transactions

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) introduced yesterday new rules on foreign exchange (FX) transactions as it continues to align the framework with current economic conditions. In a statement, the central bank said it is now allowing the prepayment of BSP-registered short-term loans although subject to documentary requirements. At the same time, the BSP said it has dropped banks’ submission of documents to support reports on importations. The central bank also lifted its requirement to have private sector loans to be granted by banks’ Foreign Currency Deposit Units or Expanded (FCDUs) approved by the BSP. These loans, however, should be those directly funded from or collateralized by offshore loans or deposits of the lending bank. The last amendment in FX rules pertain to the “clarification of the prescriptive period for filing of requests for BSP registration of foreign direct investments and rules on cross currency swaps.” The central bank continues to assess its guidelines for FX transactions to make them suitable to current economic conditions. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The BSP will continue to review rules on FX transactions and make amendments thereto as necessary to ensure that the FX regulatory framework is appropriate considering current economic conditions,” the central bank said. Last month, the BSP eased restrictions on the movement of foreign-currency denominated funds to and from the country in preparation for the integration of Southeast Asian nations. The BSP on Oct. 18 issued Circular 815, which amended foreign exchange regulations Read More …

PHL money supply grows 31% in Sept. – Bangko Sentral

 Entertainment
Nov 052013
 
PHL money supply grows 31% in Sept. – Bangko Sentral

A man arranges his peso bills inside a currency exchange shop Friday, Nov. 9, 2007, in Manila, Philippines. The dollar closed Friday at 42.795 pesos, where the peso rose to a new seven-year high on prospects of further U.S. interest rate cuts and likely increases in remittances from Filipinos overseas. (AP Photo/Pat Roque) MANILA (Mabuhay) – Money streaming within the financial system remained strong in September, driven by a very active bank lending while the impact of adjustments in the central bank special deposit window continued to pump money into the economy, Bangko Sentral ng Pilipinas said Thursday. The latest report reflects new international reporting standards, and the central bank is still updating data prior to December 2002. Despite this multi-year high in money supply expansion, inflation is staying on the tepid side in a highly liquid financial market that is deemed a temporary phenomenon. In a statement, the central bank said domestic liquidity as measured by M3 grew at an annualized 31.0 percent to P6.2 trillion in September. M3 – the broadest measure of money – includes currencies in circulation, bank deposits, and money market funds among other highly liquid assets. The September liquidity figure is the same as the revised 31.0 percent in August, the fastest on record since December 2002, according to a staff of the central bank’s Department of Economic Research. “Money supply growth was driven largely by the sustained expansion in domestic claims, or credits to the domestic economy…. in line with faster growth in Read More …

BSP grants relief to banks affected by Typhoon Santi

 Economy
Oct 222013
 
BSP grants relief to banks affected by Typhoon Santi

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has granted temporary regulatory relief to banks affected by Typhoon Santi. “(This is) to enable them to similarly assist and ease the financial burden of bank customers adversely affected by Typhoon Santi,” the central bank said in a statement. Banks eligible for the relief measures are those located in the provinces of Pangasinan, Isabela, Nueva Vizcaya, Quirino, Aurora, Bataan, Nueva Ecija, Pampanga, Tarlac, Zambales, Laguna, and Rizal. For thrift, rural and cooperative banks, the BSP has excluded the computation of due ratios for existing loans of borrowers in affected areas. The BSP has also allowed to the non-imposition of penalties on legal reserves deficiencies and has granted a moratorium on monthly payments due to the central bank for those banks with ongoing rehabilitation programs. At the same time, the central bank has slashed the general loan loss provision to one percent from five percent and said it will not be imposing penalties on delays in the submission of supervisory reports. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 For all types of banks affected, the BSP has allowed them to grant financial assistance to officers or employees affected by the typhoon. Meanwhile, for rediscounting banks, the central bank gave them a 60-day grace period to settle outstanding obligations as of Oct. 13 and allowed them to restructure with the BSP current loans of affected borrowers. The BSP has granted similar relief measures following typhoons Sendong, Pedring, Mina and Juaning in Read More …

BOP posts $465-M surplus in Sept

 Economy
Oct 182013
 
BOP posts $465-M surplus in Sept

MANILA, Philippines – The country’s balance of payments (BOP) position reverted to a surplus in September amid the return of foreign portfolio and direct investments into the country, the Bangko Sentral ng Pilipinas (BSP) reported yesterday. The country posted a surplus of $465 million in September, a turnaround from the $318-million deficit in August. The latest surplus, however, was 38 percent lower than last year’s $751-million surplus. “BOP position for September… (was) on account of continued inflow of foreign exchange from different sources particularly foreign portfolio and direct investments,” BSP Deputy Governor Diwa C. Guinigundo said in a text message. “Data for exports, remittances and BPO (business process outsourcing) receipts are still not available although initial indicators show their continued strength,” he added. “These inflows were supported by BSP investment income from abroad and NG (national government) deposits of FX (foreign exchange) with the BSP,” Guinigundo further said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The BoP position summarizes a country’s transactions with the rest of world. This includes exports, imports, foreign direct and portfolio investments, other investments, and even remittances from Filipinos abroad. A surplus means more funds went into the country, while a deficit means otherwise. In the nine months to September, the country’s BoP surplus declined 34 percent to $3.824 billion from $5.831 billion a year ago. The central bank expects a surplus of $4.4 billion in the country’s BOP for this year. Guinigundo earlier said this projection is under review in light of latest Read More …

BSP seen to hold rates until Q1

 Economy
Oct 182013
 
BSP seen to hold rates until Q1

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) may not need to adjust current policy settings until the first quarter of next year, a member of the central bank’s policy-making Monetary Board said yesterday. “There is no need to change policy settings and even SDA (special deposit accounts) rates for the rest of the year and probably until the first quarter of next year,” Felipe Medalla, a member of the Monetary Board, told reporters. Medalla explained that his view is on account of manageable inflation expectations despite expected uptick in domestic liquidity. “Inflation rate is now slightly below target and can inch up a bit as liquidity increases because of the SDA adjustments,” Medalla pointed out. Overnight borrowing and lending rates are at 3.5 percent and 5.5 percent, respectively, since the start of the year. The rates have been kept steady amid a robust economy that already expanded by 7.6 percent in the first half supported by a benign inflation environment. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Inflation has so far averaged 2.8 percent in the first nine months of the year, below the BSP’s target of three to five percent. The rate is expected to remain within target despite a foreseen rise in domestic liquidity due to adjustments in the central bank’s SDA facility. M3, the broadest measure of domestic liquidity, has been rising by more than 30 percent for July and August, owed to money flushed out of the SDA facility.

BSP reviews macro-economic targets

 Economy
Oct 132013
 
BSP reviews macro-economic targets

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) is reviewing forecasts for foreign direct and portfolio investments, remittances, and other balance of payments components to take into account the latest developments that could affect inflows of capital into local financial markets. BSP Deputy Governor Diwa C. Guinigundo told reporters the central bank has already started reviewing projections for the country’s balance of payments (BOP) position. “We are reviewing that now. Not only the overall balance of payments, the current accounts, financial and capital accounts, but also the components,” Guinigundo said. The central bank revisits its forecasts for said indicators twice a year, usually in April and in October. The revised figures following the second review, meanwhile, are announced in November or in December. The review will take into account developments that could impact capital inflows to the country, along with remittances. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The balance of payments position is a summary of a country’s transactions with the rest of the world. Its components include imports of goods and services, merchandise exports, foreign direct investments, hot money, remittances, and other investments. Latest central bank data showed the country has seen a BOP surplus of $3.359 billion in the eight months to August, already 76 percent of the BSP’s full-year forecast of $4.4 billion. Foreign direct investments, meanwhile, summed up to $2.615 billion as of July, above the BSP forecast of $2.2 billion. Foreign portfolio investments or hot money already totaled $2.007 billion as Read More …

Inflation hits 3-mo high in Sept

 Economy
Oct 042013
 
Inflation hits 3-mo high in Sept

MANILA, Philippines – The nationwide inflation rate picked up more than expected in September on higher prices of food, non-alcoholic beverages and utilities.  In a report, the National Statistics Office (NSO) said the consumer price index rose 2.7 percent in September from a year earlier, the fastest in three months and picking up from a four-year low hit in August. Despite the acceleration, the latest figure is still within the Bangko Sentral ng Pilipinas’ forecast range of 1.9 to 2.8 percent for the month. Without food and oil prices, core inflation went up to 2.3 percent in September from 1.9 percent in August. “This reaffirms our assessment that inflation would remain manageable over the policy horizon, and that barring any unforeseen developments, policy settings continue to be appropriate,” BSP Governor Amando M. Tetangco Jr. said in a text message to reporters yesterday. ‘’The BSP will remain watchful of both local and global developments, including the impact of the resolution of the issues surrounding the US debt ceiling on financial market volatilities in the near term, and the real economy in the medium term,” he added. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Tetangco said the central bank is ready to adjust policy settings in line with keeping prices stable. “The BSP will adjust policy settings, as appropriate, consistent with our price and financial stability objectives,” Tetangco said. Since the start of the year, the Monetary Board has kept overnight borrowing and lending rates at 3.5 percent and 5.5 Read More …

Key BSP rates to hold up until 2014 – DBS

 Economy
Sep 142013
 
Key BSP rates to hold up until 2014 – DBS

MANILA, Philippines – The Bangko Sentral ng Pilipinas is expected to keep rates steady until the second quarter of next year, Singapore-based DBS said. This, as inflation remains manageable and amid the country’s favorable external balances, the bank said in its quarterly report published Friday. “From a price stability standpoint, there is again no urgency for the central bank to hike rates. Despite multiple quarters of strong GDP (gross domestic product) growth, inflation has been trending lower,” DBS said. “Stable food prices and depressed commodity prices have gone a long way towards keeping a lid on headline inflation. Barring an upward shock to these two components, a mild updrift in CPI (consumer price index) is expected as the global recovery gains traction, eventually translating into higher commodity prices,” DBS continued. Inflation has averaged 2.8 percent in the eight months to August, below the central bank target range of 3 to 5 percent for the year. The level is also below the BSP’s forecast of 3 percent. At the same time, DBS noted credit expansion may grow in the next few months as funds being flushed out of the central bank’s special deposit accounts find their way into the financial system. This may stoke inflation in the coming months, but DBS pointed out the rise in consumer prices is expected to remain manageable. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We maintain that inflation will average 3.1 percent in 2013 before rising to 4.1 percent in 2014. Monetary tightening Read More …

Businesses turn less bullish in Q3

 Economy
Aug 302013
 
Businesses turn less bullish in Q3

MANILA, Philippines – After sentiment hit an all-time high in the second quarter, businesses turned less bullish in the succeeding three-month period on the back of the seasonal drop in demand, peso volatility and concern over the impact of the US Federal Reserve’s looming exit from its massive bond buying program, the Bangko Sentral ng Pilipinas (BSP) said yesterday. In its Business Expectations Survey (BES), the BSP said the overall confidence index for the third quarter eased to 42.8 percent from record high of 54.9 percent in the second quarter. Despite the  slight drop, the index for the fourth quarter climbed to a new high of 60 percent. The index is the difference between the percentage of firms that answered in the positive and those in the negative. “Basically, the general story is the business sentiment of our respondents continue to be broadly bullish,” BSP Deputy Governor Diwa C. Guinigundo said. “There was some slight decline in the confidence index but in general, it remains in the positive story so the bullishness that we saw in the first quarter and second quarter continued in the third quarter,” he added. “Respondents attributed their less buoyant outlook to expectations of lower seasonal demand during the quarter, stiffer competition, particularly from products from China, and volatility in the movements of the peso” Teresita B. Deveza, deputy director of BSP’s Department of Economic Statistics, said.  “Uncertainties in the global economy such as the impact of the anticipated exit from quantitative easing in the US Read More …

BSP sees robust growth for emerging economies

 Economy
Aug 242013
 
BSP sees robust growth for emerging economies

MANILA, Philippines – Investors should rethink pulling out funds from emerging markets as the Bangko Sentral ng Pilipinas (BSP) said growth in these economies continue to be “robust.” “The pace of growth in emerging economies… remains robust,” the BSP’s Monetary Board noted in its meeting last July 25. “Although recent indicators suggesting weaker domestic demand in major emerging economies somewhat dampen the global growth outlook,”it added. Emerging markets, which became safe havens for investors amid a downturn in developed economies, are now experiencing capital flight because of the US Federal Reserve’s impending easing of its bond-buying program due to continued progress in the world’s largest economy. Looking at Asia, regional trends such as Indonesia’s worsening current account deficit and the contraction of Thailand’s economy have also affected other emerging market neighbors. The continued robust growth in emerging economies is amid a backdrop of a “modest” global economic growth as the US recovers, although problems in the euro zone linger. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The recovery in the US has continued on improved business and consumer sentiment, while economic activity in Japan  gains further traction,” the report read. “Meanwhile, the downturn in the euro area continues.” The Monetary Board expects the Philippine economy to continue its growth in the second quarter, following the stronger-than-expected 7.8 percent expansion in the first three months of the year. “The monthly survey of purchasing managers by the Philippine Institute for Supply Management suggests that the Philippine economy was still in Read More …

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