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A broader look at today’s business Saturday, July 20, 2024 Vol. 19 No. 277
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JUNE BOP GAP AT $155M,
BUT H1 STILL A SURPLUS
YOORAN PARK | DREAMSTIME.COM
GLOBAL TECH DISRUPTION: MICROSOFT OUTAGE IMPACTS AIRLINES, BANKS AND MEDIA
By Reine Juvierre S. Alberto
T
HE country’s Balance of Payments (BOP), or its economic transactions with the rest of the world, recorded a deficit of $155 million in June, according to the Bangko Sentral ng Pilipinas (BSP), but the year-to-date BOP position is still a surplus.
Data from the BSP showed that the BOP deficit in June was at $155 million, lower than the $606 million recorded a year ago. “The BOP deficit in June 2024 reflected outflows arising mainly from the National Government’s (NG) payments of its foreign currency debt obligations," the BSP said. Despite the deficit recorded in June , the BSP said the current year-to-date BOP position registered a surplus of $1.4 billion.
However, the figure is lower than the $2.3-billion surplus posted in January to June 2023. “Based on preliminary data, this cumulative BOP surplus reflected mainly the narrowing trade in goods deficit alongside the continued net inflows from personal remittances, trade in services, net foreign direct investments, net foreign borrowings by the NG, and net foreign portfolio investments,” the BSP said. Continued on A2
Two Islamic banks get clearance to open Islamic banking window T
HE Bangko Sentral ng Pilipinas (BSP) has approved the application of two Islamic banks to secure Islamic banking window licenses to provide wider financial access and alternative banking solutions to Filipino Muslims. BSP Deputy Governor Chuchi G. Fonacier told reporters on the sidelines of the Chamber of Thrift Banks’ (CTB) 50th Anniversary that the two Islamic banks will have an Islamic banking window where it could be a dedicated branch offering Islamic banking products and services.
Fonacier clarified that the banks would not be completely Islamic banks but only a window where they could offer Islamic banking services. One of two banks is the Maybank Group’s Maybank Philippines, whose application for an
Islamic banking license has been approved, while Fonacier did not name the other bank. “Those two have been licensed and I think they’ll soon be starting their operation,” Fonacier said. Earlier this April, BSP Assistant Governor Arifa A. Ala said that the two banks are already in the advanced stages of discussions and could file their applications soon (See: https://businessmirror. com.ph/2024/04/18/islamic-banking-options-await-filipinos-as-lenders-filing-soon/). “We see that promoting Islamic banking and finance can gener-
ate more investments. And it is also a form of diversification of sources of funding that can be used by the Philippines for different infrastructure projects,” Ala said. Currently, state-run Al Amanah Islamic Investment Bank of the Philippines and Card Bank have set up their own Islamic Banking Unit (IBU) to provide Islamic banking, financing and investment services. Islam’s banking system is based on the principles laid down by the Shari’a law. Islamic banks do not sell or capitalize on assets for
TRAVELERS wait in Terminal 1 for check-in at Hamburg Airport, in Hamburg, Germany, Friday July 19, 2024. A widespread Microsoft outage disrupted flights, banks, media outlets and companies around the world on Friday. BODO MARKS/DPA VIA AP
By Charlotte Graham-McLay & Elaine Kurtenbach The Associated Press
W
ELLINGTON, New Zealand—A widespread Microsoft outage was disrupting flights, banks, media outlets and companies around the world on Friday. Escalating disruptions continued hours after the technology company said it was gradually fixing an issue affecting access to Microsoft 365 apps and services. The website DownDectector, which tracks user-reported internet outages, recorded growing outages in services at Visa, ADT security and Amazon, and airlines including American Airlines and Delta. See related story on Microsoft outage’s impact on Philippine establishments, A4 News.
News outlets in Australia reported that airlines, telecommunications providers and banks, and media broadcasters were disrupted as they lost access to computer systems. Some New Zealand banks said they were also offline. Microsoft 365 posted on X that the company was “working on rerouting the impacted traffic to alternate systems to alleviate impact in a more expedient fashion” and that they were “observing a positive trend in service availability.” The company did not respond to a request for comment. It did not explain the cause of the outage further. Meanwhile, major disruptions reported by airlines and airports grew. In the US, the FAA said the airlines United, American, Delta and Allegiant had all been grounded. Airlines, railways and television stations in the United Kingdom were being disrupted by the computer issues. The budget airline Ryanair, train operators TransPennine Express and Govia Thameslink Railway, as well as broadcaster Sky News are among those affected. “We’re currently experiencing disruption across the network due to a global third-party IT outage which is out of our control,’’ Ryanair said. “We advise all passengers to arrive at the airport at least three hours before their scheduled departure time.” Widespread problems were reported at Australian airports, where lines grew and some passengers were stranded as online check-in services and self-service booths were disabled. Passengers in Melbourne queued for more than an hour to check in. Continued on A2
Continued on A2
RICE PROCESSING SYSTEM INAUGURATED President Ferdinand R. Marcos Jr. leads the Inauguration and Turnover of Rice Processing System in Piddig, Ilocos Norte, on Friday. Looking on is Agriculture Secretary Francisco Tiu Laurel. PRESIDENTIAL COMMUNICATIONS OFFICE
PESO EXCHANGE RATES Q US 58.2640 Q JAPAN 0.3703 Q UK 75.4344 Q HK 7.4606 Q CHINA 8.0231 Q SINGAPORE 43.3802 Q AUSTRALIA 39.0718 Q EU 63.5019 Q KOREA 0.0421 Q SAUDI ARABIA 15.5342 Source: BSP (July 19, 2024)