Dispelling speculation that growing domestic liquidity could lead to asset price bubbles and overheat the economy, the Bangko Sentral ng Pilipinas is effectively pushing more money into the system by cutting the interest rate on special deposit accounts (SDAs) by another 50 basis points. In its policy rate-setting meeting Thursday, the Monetary Board of [...]
The peso inched up on Thursday, amid expectations rising liquidity offshore could bring in more foreign portfolio flows to the country.
The Asian Development Bank has backed calls for the Bangko Sentral ng Pilipinas to be given the authority to issue and trade its own bonds, citing the need for additional tools to mop up excess liquidity given the threats of potential surges in foreign-exchange inflows.
The coupon rate on 20-year treasury bonds fell by 212.5 basis points to a record-low 3.625 percent from 5.75 percent set in the previous issue following the persistent liquidity in the local financial market.
Philippine borrowers prepaid more debts to foreign creditors last year, taking advantage of the stronger peso that made dollar-denominated borrowings cheaper.
The peso rose on Wednesday as investors manifested risk appetite anew on the back of expectations of growing global liquidity.
The peso moved sideways on Tuesday as investors weighed concerns over a weak global economy and speculations that Asian central banks will inject more liquidity in their economies to boost growth.
The Philippines may have emerged on the radar screen of foreign portfolio investors, but it is now being weighed down by too much liquidity in its financial system, the Bangko Sentral ng Pilipinas.
The Philippines may soon be a step ahead of most advanced economies, in terms of implementing the latest international regulations, once the Bangko Sentral ng Pilipinas imposes a liquidity requirement for local banks.
Local corporations are facing a rare opportunity to raise funds—whether on the debt or equity side of their balance sheets—at fairly low costs, while would-be investors in these corporate issues face an equally rare chance to receive better returns amid an environment of muted risk.
The Philippines is now at an early stage of a credit boom, Fitch Ratings said, citing the banking sector’s enormous liquidity that has allowed to maintain the robust pace of lending over the medium term.
Outstanding bank loans denominated in foreign currencies significantly grew in the first quarter with the recovery of global demand, which allowed local exporters to secure more loans to support higher production.
