The value of metal production in the country dropped by nearly a fifth last year due to taxation issues, delays in mining legislation that would pave the way for new projects, the suspension of some large operations and the continued opposition of certain sectors to various forms of mining.
The Bangko Sentral ng Pilipinas’ losses ballooned in 2012 for the third straight year largely due to efforts to stem the peso’s appreciation, huge interest payments, and declining revenue from gold sales.
As the country welcomes the investment grade it received from Standard & Poor’s, the Bangko Sentral ng Pilipinas is rolling up its sleeves to prevent an asset price bubble that may arise from the bullish sentiment of portfolio investors in the economy.
The International Monetary Fund has urged the Bangko Sentral ng Pilipinas to widen its regulatory scope and include parent conglomerates of banks to ensure the stability of the country’s banking sector.
Net inflow of dollars into the country grew in the first quarter as remittances remained strong and more foreign portfolio funds came in due to the favorable sentiment on the economy.
The country’s foreign exchange reserves grew to $84.1 billion in March, driven partly by the central bank’s dollar purchases intended to help curb the peso’s appreciation.
The Bangko Sentral ng Pilipinas wants an export sector development agenda drawn up to ensure that the country’s foreign exchange reserves remain at a healthy level in the face of worsening global economic conditions.
Banks in the country are on an expansion mode, with commercial, thrift, and rural banks opening 150 new branches in the fourth quarter of 2012.
The Development in Europe has the Bangko Sentral ng Pilipinas on edge.
The Bangko Sentral ng Pilipinas may soon ban foreign funds from being invested in its overnight borrowing facility—a move seen to address risks of the country attracting even bigger volumes of speculative capital from abroad.
The country’s foreign exchange reserves reached $83.82 billion by the end of February, lower than the previous month’s level but still considered to be comfortable, the Bangko Sentral ng Pilipinas (BSP) said Thursday.
The Bangko Sentral ng Pilipinas said banks that would fail to meet the “capital conservation buffer” requirement, which will be imposed starting January 2014, would be prohibited from paying dividends and from distributing discretionary bonuses to employees.
