Aquino: US credit rating downgrade won’t affect Philippine investment climate

A ticker is seen on the floor of the New York Stock Exchange moments after the closing bell on Aug. 8, 2011 in New York City. The Dow finished down more than 600 points after Standard and Poor's downgraded the US credit rating to close at 10,809.85. AFP

BATANGAS CITY, Philippines – President Benigno Aquino III on Tuesday expressed confidence that the recent economic developments in the US won’t have any negative effect on the investment climate in the Philippines.

He also expects the Philippine Stock Exchange and the peso to “rebound.”

“I think we will stand and fall on our merits…. The value of investments in this country will not change with what is transpiring in America,” President Aquino told reporters in an interview.

“If it is profitable to do business here it will remain to be profitable…. Investors who are with us in the long term will still see the advantages of investing in the country. The market correction is a symptom of how the market operates. You will see the numbers rebounding,” he added.

Nonetheless, the President said, that the Bangko Sentral ng Pilipinas “would be checking [the country’s] reserves on how much of it will still be dollar-based as opposed to a broader basket of currencies.”

Asked if he supported the diversification of the reserves to other currencies outside the US dollar, Aquino said, “Yes. There is an old saying on not to put all of your eggs in one basket.”