Quantcast
Latest Stories

Sustained dollar inflows seen

By

The Philippines is expected to continue enjoying a substantial inflow of dollars, with the balance of payments (BOP) seen staying in a surplus at least for the next three years.

According to the Bangko Sentral ng Pilipinas, the country’s export earnings were seen to improve and remittances were likely to grow further through 2016.

Moreover, tourism and foreign investments in peso-denominated securities and in the business process outsourcing (BPO) sector were forecast to fuel foreign-exchange inflows to the country.

“Dollars from exports and remittances will continue to come in, and the BOP will continue to post surpluses,” BSP Deputy Governor Diwa Guinigundo said Wednesday when asked about the central bank’s outlook for this year up to 2016.

With the significant dollar inflows the country is expected to corner over the next few years, Guinigundo said there was reason to believe that the peso would continue to appreciate. In 2012, exports managed to grow, albeit slower than the 10-percent target, despite the anemic growth of key export markets like the United States and the eurozone. Merchandise exports grew by 7.6 percent to nearly $52 billion from $48 billion in 2011.

Remittances last year were estimated to have grown year on year by 5 percent to $21.1 billion.

Growth in exports despite the weakness of the global economy was credited partly to a diversification of markets. Filipino exporters are gradually tapping buyerss outside the United States and Europe, particularly neighboring countries in Asia.

The increase in remittances was attributed to the healthy demand for Filipino workers from alternative labor markets such as those in Asia and the Middle East.

With the dollar inflows in the form of remittances and export revenues, together with foreign portfolio investments and foreign investments in the BPO sector, the Philippines continued to post a BOP surplus of $9.24 billion in 2012, although this was lower than the $10.18-billion surplus in 2011.

The BOP, a record of the country’s commercial transactions with the rest of the world, shows the inflow and outflow of dollars and other foreign exchange to and from the country. A surplus causes a buildup in the gross international reserves (GIR), which is the country’s total reserve of foreign exchange. The GIR stood at a record high $84 billion as of the end of 2012.

Guinigundo said the BSP saw no signs so far that the positive momentum for dollar inflows would be reversed.

Given the positive outlook on the Philippine economy, the BSP sees foreign portfolio investments and foreign investments in the BPO sector to rise further over the medium term.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: currencies , dollar inflow , Dollars , Philippines

  • http://profile.yahoo.com/AND7MQ5FERICDOIAUW56RYT45A tower_of_power

    You guys should be ashamed!!! BIGGER AND BIGGER DLRS INFLOW FROM OFW SHOULD MAKE YOU ALL BE ASHAMED!!!! BIGGER OFW MONEY INFLOW ONLY MANIFEST A WEAK ECONOMY… AND A GROSS FAILURE ON YOUR PART!!!!!!!!!!!!!!!!



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Pakistan library named ‘bin Laden,’ as memory fades
  • US teacher fired over comment on black president
  • Magnitude-7.5 earthquake shakes Mexican capital
  • Title of new Hillary Clinton book: ‘Hard Choices’
  • Filipinos, Dutch re-enact crucifixion of Christ
  • Sports

  • Nadal ousted by Ferrer in Monte Carlo quarters
  • Pacquiao shorts in Bradley fight sold for P1.7M in LA auction
  • Ryu pitches Dodgers past Giants
  • Alonso sets the pace in Chinese GP practice
  • Heat seek Three-peat but Spurs, Pacers top seeds
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • Myx TV premieres Asian American ‘docu-series’
  • A nutty finale for ‘Scandal,’ TV’s craziest show
  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Business

  • US commerce secretary spells out economic facet of ‘pivot to Asia’
  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Barbie doll has a problem
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Multicultural flock marks Good Friday in San Francisco
  • Las Vegas ‘Pinoy Pride’ fest hails Filipino heritage
  • Marking Jesus’ journey on Good Friday
  • Filipina accomplice arrested for fake bills in Malaysia
  • DoH denies Filipino nurse no longer positive for MERS virus
  • Marketplace