Sale of gold part of portfolio strat–BSP S ELLING gold is no simple matter and the Bangko Sentral ng Pilipinas (BSP) said this is being done relative to various factors such as economic growth and other portfolio investments. On the sidelines of a seminar on deepening financial markets at the Asian Development Bank (ADB) on Wednesday, BSP Governor Eli M. Remolona Jr. said the sale of gold is part of a “whole portfolio strategy.” Remolona also said gold is estimated to account for 9 percent of the country’s Gross International Reserves (GIR). In 2023, the BSP Annual report showed gold reserves account for 10.2 percent of
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the asset component of the country’s reserves. “It should be in relative terms, relative to the portfolio, relative to GDP, [that should be the case]. But it’s part of the investment strategy. There is a strategy [and] it’s part of a whole portfolio strategy,” Remolona told reporters. The BSP said it sold gold in the first half of the year as part of its active management strategy of the country’s gold reserves, which form part of the country’s GIR. “The BSP took advantage of the higher prices of gold in the market and generated additional income without compromising the pri-
BSP Governor Eli M. Remolona Jr.: “It should be in relative terms, relative to the portfolio, relative to GDP, [that should be the case]. But it’s part of the investment strategy. There is a strategy [and] it’s part of a whole portfolio strategy,”
mary objectives for holding gold, which are insurance and safety,” BSP said in a statement. Amid the gold sales, the country’s GIR remained robust, with the end-August 2024 figure rising to $107.9 billion from $103.8 billion as of end-December 2023. Based on the BSP’s annual report, gold purchases increased 26 percent, reaching 298,203 troy ounces in 2023. BSP said good delivery bar (GDB) production rose by 11.4 percent in 2023. The BSP produced 737 GDBs, with an average gold assay
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Thursday, September 26, 2024 Vol. 19 No. 345
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TO BE DEALT AS 25-25 BPS B C U. O
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@caiordinario
HE last two meetings of the Bangko Sentral ng Pilipinas (BSP) could see 25-basispoint reductions in key policy rates following expectations that inflation could be lower than the August inflation print.
If this falls through, the key policy rate will be pegged at 5.75 percent by yearend. This will be the first time interest rates are below 6 percent since December 15, 2022 when key policy rates were raised to 5.5 percent from 5 percent. On the sidelines of a seminar on deepening financial markets at the Asian Development Bank (ADB) on Wednesday, BSP Governor Eli M. Remolona Jr. also told reporters that a single rate cut of 50 basis points (bps) may be reserved for expectations of a “hard landing.” “We have a policy meeting in OcC A
ARMORED AMBITIONS
A wide array of modern military equipment is displayed at the World Trade Center in Pasay City on Wednesday, September 25, 2024, for the 5th edition of the Asian Defense and Security Exhibition (ADAS) which runs till September 27. For ADAS’s 10th anniversary in the Philippines, over 200 companies from 36 countries showcasing cutting-edge defense and security products and technologies are featured. Poised to be the largest ADAS event yet, it serves not only the Philippines but also the Asia-Pacific region, bringing innovative solutions to evolving security challenges. ROY DOMINGO
GOVT DANGLES PERKS FOR House OKs P6.35-T budget GEOTHERMAL DEVELOPERS for ’25; OVP gets P733M B L L @llectura
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UALIFIED geothermal power developers will be entitled to financial assistance that may cover almost half of their drilling and exploration expenses, according to Energy Undersecretary Mylene Capongcol. “The de-risking facility, it’s like $250 million, and whoever is eligible, they are entitled up to 50 percent” of the drilling and exploration costs, which are the most expensive and riskiest part of geothermal development, Capongcol said during the 5th Philippine International Geothermal Conference held in Makati City.
The Asian Development Bank (ADB) and the Department of Finance (DOF) are helping the DOE craft the mechanics and review the applications of interested geothermal firms. The possible lenders may include the Land Bank of the Philippines, the Development Bank of the Philippines, and the Philippine Guarantee Corporation. “They will be the facilitators,” said Capongcol. “Actually, the concept paper and framework are already done but of course we are still looking for someone to implement and of course the fund manager. We are just finalizing,” added the DOE ofS “G,” A
B J M N. C @joveemarie
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OTING 285-3-0, the House of Representatives approved on third and final reading late Wednesday HB 10800 or the proposed General Appropriations Bill. The lower chamber gave the approval after President Ferdinand “Bongbong” R. Marcos Jr. certified as urgent House Bill (HB) 10800, also known as the General Appropriations Bill (GAB), which details the proposed P6.352-trillion national budget for 2025. This certification, received by the Office of the Speaker late Tuesday, allowed the House of Representatives to fast-track the approv-
al of the 2025 national budget by passing it on both second and final readings within the same day. The national budget bill will now be transmitted to the Senate for its own deliberations. The Senate and House are on recess from September 26 until November 4. Once both chambers of Congress approve their respective versions of the budget, a bicameral conference committee will convene to reconcile any differences between the two versions. After the bicameral meeting, the reconciled budget will be subject to ratification by both the House of Representatives and the Senate before C A
PESO EXCHANGE RATES US 56.1070 ■ JAPAN 0.3919 ■ UK 75.2563 ■ HK 7.2083 ■ SINGAPORE 43.7039 ■ AUSTRALIA 38.6689 ■ SAUDI ARABIA 14.9559 ■ EU 62.7276 ■ KOREA 0.0424 ■ CHINA 7.9790 Source: BSP (September 25, 2024)