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Peso slightly down after news of BSP tightening special deposit account facility

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MANILA, Philippines—The peso moved sideways on the first trading day of the week following reports that the Bangko Sentral ng Pilipinas may further rationalize its special deposit account facility.

“Rationalizing” is taken to mean making the SDA facility much more of a liquidity management tool by the BSP and less of an investment outlet. As such, the BSP is seen hinting at being poised to accommodate less investment in SDAs.

The local currency closed at 40.62 against the US dollar, down by 1.8 centavos from Friday’s finish of 40.602:$1.

Intraday high hit 40.615:$1, while intraday low settled at 40.645:$1.

Volume of trade reached a mere $475 million from $734.7 million previously.

For many fund owners, SDAs are one of the attractive fixed-income investment outlets given that SDA interest rates are higher than those on bank deposits and short-term government securities.

The BSP recently cut the interest rates on SDAs to a uniform rate of 3 percent. Previously, the rates were set at varying premiums above the central bank’s overnight borrowing rate of 3 percent.

BSP Governor Amando Tetangco Jr. said Friday that the central bank would like to further rationalize the SDA facility, a move that he said would align monetary policy in the country with international best practices.

The BSP’s intention to be less accommodating to SDA placements  seen by the market as discouraging foreign portfolio inflows, according to traders.


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Tags: Bangko Sentral ng Pilipinas , business and finance , currencies , economy , Foreign Exchange , Philippine peso , portfolio investments , special deposit account facility , US dollar

  • JIMBOYPALABOY

     huwag nating haluan ng pulitika ang ating ekonomiya. pagbasak nito kasama tayo. makagloria ka man o maka aquino magtulungan tayo.

  • noynoyingalways

    Minana lang po ni Pnoy kay GMA ang magandang lagay ng economy lahat po ng naghirap nyan ay si GMA if since 2002 tina track nyo po ang economic climate ng Pinas

    • http://pulse.yahoo.com/_CYEDXPOCLZHYJEI2HFUVIYMUVU Emilio

       ang minana ng P-noy kay Arrobo ay billion billion utang ng bansa sa world bank, at puro pang loloko at pang babastos ni arrobo sa taong bayan yan ang minana namin sa peking presidente Gloria Arrobo

    • http://twitter.com/erncastillo ern

      ha? e bakit kay bantot ng team unity nuong nag election?

  • bongarroyo

    bumagsak ang peso …..aba’y kasalanan ni PNoy iyan.

    ngunit kapag ang laman ng balita ay tumataas ang halaga ng pera natin…dapat pasalamatan si gloria….LOL

    mga talangka talaga sala sa init sala sa lamig…LOL…LOL

  • Weder-Weder Lang

    Paano na ito? Pinangangalandakan pa naman ni PNoy ang malakas na piso bilang tanda ng tagumpay ng ekonomiya ng kasalukuyang administrasyon. 

    • http://twitter.com/erncastillo ern

      crab….talangka…..hahahahaaa. 
      Natural lang naman na magmove sideways ang exchange rate…pang isang araw lang yan, tapos sabihin mo ekonomiya kaagad. BOBO!

      • Weder-Weder Lang

        Sabi mo ern eh. E di pagbigyan na lang kita.



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