End-March GIR slips to $106.228B By Reine Juvierre S. Alberto
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HE Philippines’s gross international reserves (GIR) slipped as of end-March, dragged by weak foreign investment flows as a result of the United States levying higher import tariffs and reciprocal tariffs. Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed the country’s GIR decreased to $106.228 billion as of end-March 2025 from $107.395 billion in end-February 2025. The BSP traced the decline to the national government drawdowns on its foreign currency
holdings with the BSP to settle external obligations, along with net foreign exchange operations by the central bank. Rizal Commercial Banking Corporation Chief Economist Michael L. Ricafort pinned the lowered GIR on the monthly decline in foreign investments amid Donald Trump’s higher import tariffs and anticipation of reciprocal tariffs. “[The] Trump factor/premium led to some market volatility, especially on the US stock markets and other risky asset classes, though offset by some shift to safe havens such as US Treasuries/government bonds that led to lower bond yields recently,” Ricafort said.
Reserves in the form of foreign investments dropped month-onmonth to $88.562 billion from $90.116 billion. The central bank may have also “intervened” in the forex market to “smooth out volatility” or “temper excessive peso depreciation” in March, which naturally reduces reserves, according to John Paolo R. Rivera, senior research fellow at the Philippine Institute for Development Studies. Foreign currency deposits also dipped to $498.2 million as of end-March from the previous month’s $805.7 million. Still, the BSP said the latest GIR level “provides a robust external
liquidity buffer,” which is equivalent to 7.3 months’ worth of imports of goods and payments of services and primary income. The GIR is seen to be adequate if it can finance at least three months’ worth of the country’s imports of goods and payments of services and primary income, the BSP explained. “The dip [in the GIR level] is not alarming but rather part of routine fluctuations tied to market and debt management operations,” Rivera added. The country’s gold reserves, which amounted to $12.762 billion in March 2025, up from $12.049 See “End-March,” A2
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Wednesday, April 9, 2025 Vol. 20 No. 179
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
By Andrea E. San Juan
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ETALIATORY measures that other countries may take following Washington’s announcement of the reciprocal tariffs could badly hit Philippine small businesses, particularly those in agriculture and food processing, the Philippine Chamber of Commerce and Industry (PCCI) said. In a statement on Tuesday, PCCI, the largest business group in the Philippines, emphasized that while the US has yet to announce the exact coverage of goods that would be slapped with additional tariffs, “We remain vigilant as such tariffs typically target specific categories of goods such as food and agri products and electronics, which are our major exports.” “We are wary at the potential impact of the actions other countries may take See “Tariff,” A5
DOCTORS PRESCRIBE: TAX THE VICE Doctors, medical professionals and health advocates fill the auditorium of the Lung Center of the Philippines in Quezon City on Tuesday, April 8, 2025, as they call on candidates in the May midterm elections to support higher excise taxes on alcohol, cigarettes, and vape products. The Sin Tax Coalition emphasized the alarming rise of tobacco and alcohol use among the youth, linking it to a surge in early-onset diseases and premature deaths. Story in B4 Banking, “Elect pro-tobacco tax candidates, Sin Tax Coalition asks voters.” NONOY LACZA
META BACKS ‘FAKE NEWS’ DRIVE, BUT SHUNS LIABILITY FOR THEM By Jovee Marie N. Dela Cruz
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ECH giant Meta on Tuesday expressed strong support for Congress’s initiatives to establish an antifake news regulatory body. Meta’s Director of Public Policy for Southeast Asia, Dr. Rafael Frankel, signaled the company’s readiness to collaborate with lawmakers to protect users and uphold democratic values. Responding to House Deputy Majority Leader Paolo Ortega V’s inquiry about Meta’s potential support for a Philippine regulatory committee for social media platforms, Frankel
stated, “I’d be more than happy for Meta as a company to engage with the Philippine government and Congress on any type of regulations that you are considering when it comes to these issues.” Frankel cited Meta’s extensive experience working with governments across Southeast Asia, Asia Pacific, and globally to develop regulations that balance user protection with freedom of expression while also accounting for local nuances. “It’s really important that countries have their own solutions, and we are happy to share See “Meta,” A2
February jobless rate declines to 3.8%—PSA By Bless Aubrey Ogerio
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HE unemployment rate eased in February 2025, but is still above last year’s number, according to the Philippine Statistics Authority (PSA). Results of the latest Labor Force Survey show the jobless rate hit 3.8 percent (1.94 million individuals). The percentage rate was an improvement from January 2025’s 4.3 percent (1.80 million), but still higher than the 3.5 percent (2.16 million) recorded in February 2024. Underemployment, or the number of Filipinos seeking extra jobs or more working hours, also dropped to 10.1 percent (4.96 million) in February 2025. This was lower than January’s 13.3 percent
(6.47 million) and February 2024’s 12.4 percent (6.08 million). According to National Statistician Claire Dennis Mapa, the yearon-year rise in unemployment was mainly due to more young people returning to school. “Most of the increase was in the 15 to 24 age group. Their reason: they went back to schooling,” Mapa said in Filipino during a press briefing on Tuesday. As for the month-on-month results, the PSA undersecretary linked them to political activity ahead of the May elections. “We’ve already seen a slight pickup in employment tied to political organizations—around 41,000 (jobs),” he added in Filipino. “This trend will likely continue until May, though the overall boost isn’t that big.”
The National Economic and Development Authority (Neda) echoed that the increase in joblessness was largely youth-driven. Still, it said the current rate remains better than the government’s 2025 unemployment target range of 4.8 percent to 5.1 percent. Compared to other Asian economies, the Philippines is somewhere in the middle. It did better than China (5.4 percent) and India (6.4 percent), but was still behind Malaysia (3.1 percent) and Vietnam (2.2 percent).
Momentum intact
DESPITE the mixed results, the Marcos administration said it is staying the course on improving job quality. “We will build on our momen-
tum and intensify our efforts to secure strategic job-generating investments, promote a dynamic and innovative business environment, and diversify growth drivers,” Neda Secretary Arsenio Balisacan said in a statement on Tuesday. “The continued rollout and implementation of high-impact infrastructure flagship projects, particularly in energy, transport, and digital connectivity, will boost domestic employment and business activity,” he added. The employment rate for February 2025 stood at 96.2 percent, or 49.15 million employed Filipinos, up from January’s 95.7 percent (48.49 million), but slightly down from February 2024’s 96.5 percent (48.95 million). See “February,” A5
PESO EXCHANGE RATES n US 57.2970 n JAPAN 0.3879 n UK 72.9334 n HK 7.3763 n CHINA 7.8253 n SINGAPORE 42.3732 n AUSTRALIA 34.3037 n EU 62.5397 n KOREA 0.0390 n SAUDI ARABIA 15.2613 Source: BSP (April 8, 2025)