Quantcast
Latest Stories

Peso seen to strengthen till end-2012

Appreciation to be moderated by BSP rate cut

By

The peso is expected to keep its tendency to appreciate in the next three months, but this will be tempered by a further reduction of key policy rates that is expected in December.

First Metro Investment Corp. and the University of Asia and the Pacific said in a joint research, published in the latest issue of Market Call, that the foreign exchange rate could fluctuate through November to January.

FMIC and UA&P see the peso trading at 41.42 to a dollar in November, appreciating slightly to 41.38 in December and further to 41.27 in January.

“The peso will have an appreciation bias, but this will be moderated by a further 25-basis-point rate cut in December,” they said.

So far this year, the Bangko Sentral ng Pilipinas has cut both the overnight borrowing and lending rates by 100 basis points to 3.5 percent and 5.5 percent, respectively.

FMIC and UA&P also said that other measures that the BSP was prepared to put in place to avoid a further erosion of the Philippine economy’s competitiveness would temper the peso’s continued strengthening.

They added that Philippine sovereign securities should remain in favor among foreign investors due to the strong dollar inflows and the Philippines “very high” international reserves, which FMIC and UA&P expect to reach $84.5 billion by year’s end. The amount would be equivalent to 12 months’ worth of the country’s imports of goods and services.

The reserves amount would also be “much higher in relative terms than our Asean (Association of Southeast Asian Nations) and East Asian neighbors, except for China and Taiwan,” they said.

According to the BSP, cash remittances that overseas Filipinos sent through banks reached $15.6 billion in the nine months to September, an increase of 5.5 percent from last year.

The inflow of foreign portfolio investments also reached $14.7 billion in the 10   months to October, with net inflow placed at $2.7 billion.

The country’s gross international reserves reached $82.1 billion as of the end of October 2012, rising by about $100 million from the previous month’s level.

Earlier this month, the government raised P30.8 billion or $750 million in 10-year peso-denominated global bonds. The proceeds were meant specifically to help buy back as much as $1.5 billion in outstanding Philippine bonds denominated in US dollar and euro. The Bureau of the Treasury plans to issue $500 million in 10.5-year bonds to domestic investors in an auction later this month.


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: BSP rate cut , Business , currency , Peso

  • http://pulse.yahoo.com/_WIWYLFLU4LPKS7B2ZLLRVFKS3Y vir_a

    The more our poor OFWs send their money, the stronger the peso gets. However, they will only see the value of their hard earned income goes down, so is the interest the bank pays for their savings deposit. It’s really a real sacrifice on their part because they worked hard for their money and pay part of it by losing its value which only big businessmen benefit. Pnoy is a sure beneficiary too since the peso strength can be attributed to his supposed good performance which is really not true because all the perceived progress we have is due to strong inflow of remittance. His rating keeps going up while he does not compensate it with genuine achievements. Poverty is still high, corruption is still rampant, pyramiding scams are all around, criminality has not gone down, there are no new jobs for our new grads. There are many jobs available but don’t match with the skills of job seeks, so it’s useless.



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

  • Drilon denies involvement in pork scam
  • Complex health care system for California’s elderly and poor explained
  • Malang the croc must regain strength before return to swamp, says mayor
  • Palace: Lacson’s version of Napoles testimony to be evaluated
  • Scientists eye iceberg bigger than Guam
  • Sports

  • Promoters Dela Hoya, Arum in talks for Pacquiao-Alvarez—report
  • Benzema guides Madrid to 1-0 win over Bayern
  • Suns’ Goran Dragic win NBA’s Most Improved Player award
  • Heat go up 2-0, hold off Bobcats 101-97
  • Ronaldo shakes off injury fears to play Bayern
  • Lifestyle

  • Gongs and southern dances star in a workshop at San Francisco Bayanihan Center
  • This woman ate what?
  • Photos explore dynamics of youths’ sexual identity
  • 12th Philippine Food Expo set at the World Trade Center
  • No tourist draw, Malang the croc will remain wild
  • Entertainment

  • Smithsonian wants photos, videos for ‘Day in the Life of Asian Pacific Americans’
  • What Garcia Marquez left behind
  • Has Ai Ai fallen deeply with ‘sireno?’
  • Sony developing live-action Barbie comedy
  • California court won’t review Jackson doctor case
  • Business

  • Metro Pacific acquires stake in Victorias
  • How ‘one percent’ economic elite was uncovered
  • Facebook profits triple as mobile soars
  • Insular Honors Sales Performers at Testimonial Rites
  • Apple increases stock buyback, will split stock
  • Technology

  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • Obama to visit Filipino soldiers in Fort Bonifacio
  • Fil-Am youth conferences unite under one theme
  • Embassy advisory: Filipinos still need visas to enter US
  • No travel restriction to Mideast, DFA clarifies
  • PH-HK relations repaired, but families of victims still being courted
  • Marketplace