Philippines to contribute $500M to IMF facility
By: Michelle V. RemoThe Philippines has pledged to contribute $500 million to the International Monetary Fund’s latest lending facility aimed at addressing crises such as volatility in the eurozone.
The Philippines has pledged to contribute $500 million to the International Monetary Fund’s latest lending facility aimed at addressing crises such as volatility in the eurozone.
Metrobank expects remittances to the Philippines to grow by 6 percent this year despite the prolonged crisis in the eurozone, saying sustained demand for Filipino workers in other labor markets will boost the amount of money they send home.
The peso inched up slightly on Wednesday amid a market that has been weighing the impact of latest oil disputes between Europe and Iran, the approval of the second bailout package for Greece, and indications of improving US economy, on their global economic outlook.
The banking sector’s resources rose further in November which, according to regulators, showed that banks in the country would be able to support faster economic growth this year.
The peso fell on Tuesday as concerns over the rise in global oil prices, brought about by the decision of Iran to cut supply to France and Britain, elicited concerns over potential global inflationary problems and offset the euphoria resulting from the approval of the second bailout package for debt-ridden Greece.
The country registered a balance of payments (BOP) surplus in January as the inflow of dollars and other foreign currencies exceeded those that had flowed out, the Bangko Sentral ng Pilipinas reported.
The peso inched up on the first trading day of the week following the move of China to cut its reserve requirement ratio for banks in a bid to stimulate economic growth.
The government intends to tweak the country’s export strategy by pushing for a further penetration of the Chinese market and focusing less on electronics, aiming to reverse last year’s contraction in export earnings that followed the changes in the global economic landscape.
Bond issuances remained a major source of funds for corporate entities in the first 11 months of 2011, but companies sold less fixed-income securities during the period compared with the previous year as they tried to raise more cash via sale of equities.
The flow of portfolio investments to and from the Philippines fell in January as both local and foreign fund owners adopted a cautious stance in the wake of a prolonged debt crisis in the Europe and the continued weakness in the US economy.
Multinational insurer Pru Life UK has asked policymakers to lift the 5-percent equity rule and relax other requirements on bancassurance to make insurance products more accessible to the public.
HSBC expects the Philippines to enjoy a moderate rate of increase in consumer prices this year, giving policymakers more room to reduce interest rates further.
