Time deposits lead to all-time-high bank FCDU
T
CHRIST IS RISEN! The National Shrine of Saint Padre Pio in San Pedro, Santo Tomas, Batangas, celebrates Easter with the traditional Salubong, reenacting the meeting of the risen Jesus and the Blessed Virgin Mary. The dawn procession, led by men carrying the statue of Christ and women with the statue of Mary veiled in black, culminates in a joyful reunion as an angel sings the Hallelujah and unveils Mary’s statue. Alongside, traditional dancers perform the Bati dance, a greeting to the Risen Christ and Mary, adding vibrant cultural flair to the Easter rites. ROY DOMINGO
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IME deposits of Filipinos led to an all-time high in Foreign Currency Deposit Units (FCDU) of banks as of December 2023, according to the Bangko Sentral ng Pilipinas (BSP). Data showed FCDU deposit liabilities reached $54.4 billion as of end-December 2023. This is higher by about $2.6 billion or 5.1 percent from the endSeptember 2023 level of $51.8 billion. It is 13.72 percent higher than the $47.85 billion posted in December 2022. “This is mainly due to the surge in FCDU time certificate of deposits owned by resident individuals which aligns with the uptick in the remittances from overseas Filipinos,” BSP said. The data showed almost all or $53 billion, representing 97.4 per-
cent of the total FCDU deposit liabilities, were owned by Filipino residents. “The bulk of these deposits continued to be owned by residents, essentially constituting an additional buffer to the country’s gross international reserves,” BSP said. The country’s gross international reserves (GIR) amounted to $103.8 billion as of end-December 2023, higher than the $96.1-billion level registered as of end-December 2022. The central bank also reported that the final gross international reserves (GIR) level is at $102 billion as of end-February 2024, lower than the $103.3 billion as of endJanuary 2024. Meanwhile, the BSP said outstanding FCDU of banks stood at
$15.2 billion as of end-December 2023. This represented a decrease of $621 million or by 3.9 percent from the end-December 2022 level of $15.8 billion. Compared to the end-September 2023 level, FCDU of banks decreased by $340 million or 2.2 percent from the $15.5 billion posted during the period. “[This was] as principal repayments exceeded disbursements amidst elevated interest rates for both short-term and medium-to long-term (MLT) loans,” BSP explained. BSP said that as of the endDecember 2023 period, the maturity profile of the FCDU loan por tfol io rema ined predominantly MLT.
BusinessMirror Monday, April 1, 2024 Vol. 19 No. 167
See “Time,” A2
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NET EXTERNAL LIABILITY WIDENS ON DEBT LOAD n
By Cai U. Ordinario @caiordinario
F
OREIGN and domestic debt obligations widened the government’s net external liability position in the third quarter of 2023, according to the Bangko Sentral ng Pilipinas (BSP).
See “Net,” A2
BEATING THE SUMMER HEAT Long Beach in Noveleta, Cavite City, becomes a vibrant hub as people gather to celebrate Easter Sunday or Linggo ng Pagkabuhay, a tradition that not only brings communities together but also provides relief from the scorching temperatures. Meanwhile, in various parts of the Philippines, including Metro Manila, Calapan, Puerto Princesa, Roxas City, and Iloilo City, the heat index is soaring dangerously between 42 and 44 degrees Celsius, prompting warnings from Pagasa. As the mercury rises, precautions against heat-related illnesses like cramps, exhaustion and heat stroke are crucial. NONIE REYES
PHL HAS HIGHEST DISASTER RISK WORLDWIDE, SAYS OECD
C
HALLENGES faced by nature-based solutions (NbS) for flood management prevent these from being implemented in the Philippines, considered by the OECD Development Center as the country with the highest disaster risk globally. A working paper described NbS as a new approach for flood management which has been recognized by policymakers in the region. These solutions, OECD said, may involve planting gardens and grass verges along streets. These solu-
tions have co-benefits to human health, livelihoods, food and energy and biodiversity, among others. “NbS is place-specific, and each river basin and coastal area has different natural characteristics and faces different flood risk and challenges,” the working paper stated. In the Philippines, OECD sa id, one study s ho w e d t h at re g ro w i n g mangrove forests can significantly reduce economic losses from storms and flooding, among other benefits. See “PHL,” A2
DTI lays groundwork for FTA with Sokor before ratification By Andrea E. San Juan @andreasanjuan
M
A NIL A is l ay ing t he groundwork as it prepares, among others, the incentives framework for banana farmers ahead of the ratification of the free trade deal with South Korea, according to a Trade official. In a recent interview with reporters, Trade Undersecretary Ceferino S. Rodolfo said the Philippine government is eyeing to ratify the free trade agreement (FTA) with South Korea by the middle of this year. “[Should be] by mid of this year. Because then South Korea would also be ready as they have elections this April I think. So
the timeline we’re looking at is by mid of this year,” Rodolfo said. A lready “running,” Rodolfo described the trade deal between the two nations as “very targeted and very focused,” adding that there are no issues in sight for the trade deal ahead of its implementation. Meanwhile, the Trade official gave updates ahead of the implementation of the free trade deal, saying the Philippine government is already working on the incentives regime for banana companies. The Philippines was able to secure tariff elimination in five years for bananas under the FTA with South Korea. See “DTI,” A2
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BSP said the country’s net external liability position widened by 4 percent quarter-on-quarter to P2.6 trillion in the third quarter of 2023 from P2.5 trillion in the second quarter of 2023. This was due in part to the 4.2 percent quarter-on-quarter increase in general government’s net financial liability position to P9 trillion in the third quarter of 2023 from P8.6 trillion in the second quarter of 2023. “This resulted from the decline in the national government’s deposits with the central bank, which the national government partly used for the repayment of its domestic and external obligations,” BSP said.
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WITH ALL THE RECENT HEADLINES ABOUT PANELS AND TIRES FALLING OFF PLANES, IS FLYING SAFE?
PESO EXCHANGE RATES n US 56.2810 n JAPAN 0.3715 n UK 71.0998 n HK 7.1940 n CHINA 7.8005 n SINGAPORE 41.8353 n AUSTRALIA 36.7627 n EU 60.9748 n KOREA 0.0420 n SAUDI ARABIA 15.0063 Source: BSP (March 27, 2024)