BSP: Efforts to stabilize PHL Peso successful T
HE Philippine peso’s depreciation has been under a percent and remains smaller compared to other currencies in the region, according to the Bangko Sentral ng Pilipinas (BSP). Given this, BSP Governor Eli M. Remolona Jr. recently said this means efforts to stabilize the peso have been successful. These efforts involved the BSP’s “occasional” intervention in the foreign exchange market. Remolona said the BSP’s forward guidance has also helped stabilize the peso. This, he said, reduced uncertainties when
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it came to the peso. “We have judiciously intervened when things get too crazy in the foreign exchange market,” Remolona said in a recent briefing at the House of Representatives. “Of course, if the peso is moving in the direction that fundamentals say it should move, then we let it move in that direction.” To date, Remolona said the peso has remained below 55 pesos to one dollar. He said the BSP hopes this will continue in the months ahead. On Friday, however, the peso depreci-
ated to P56.315 to the greenback. This marked the third day the peso traded at the P56 to the dollar level and was the lowest since December 2022. Nonetheless, Remolona is confident that remittances as well as business process outsourcing (BPO) revenues will be robust this year until next year. Remittances, based on BSP’s projections, may reach $33.5 billion this year while BPO revenues could reach $29.9 billion by year end. The BSP expects this to offset the weakness in the country’s net foreign di-
rect investments (FDIs). This year, FDIs could reach $9 billion. “The BPO and remittances are about six times the foreign direct investment. And the foreign direct investments have weakened a little bit. And we expect it to stay around the same amount next year,” Remolona said. This will ultimately affect the country’s foreign reserves. However, the BSP still expects the country’s Gross International Reserves (GIR) to average $100 billion this year and next year. See “BSP,” A2
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NG SUBSIDIES TO STATE FIRMS RISE 20.77% IN H1 w
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By Jasper Emmanuel Y. Arcalas
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Monday, August 14, 2023 Vol. 18 No. 301
P25.00 nationwide | 2 sections 20 pages |
@jearcalas
HE national government’s total subsidies to state-owned financial institutions, corporations and agencies rose by a fifth in the first half to P63.701 billion from P52.745 billion driven by higher releases to other government corporations.
Latest Bureau of the Treasury (BTr) data showed that the national government subsidy as of end-June was 20.77 percent higher than what was recorded in the same period of last year. Treasury data showed that more than half or about 53 percent of the subsidies extended by the national government went to other
government corporations led by the Philippine Health Insurance Corp. (PhilHealth). Total subsidies to other government corporations expanded by 72 percent during the six-month period to P34.108 billion from P19.774 billion recorded last year, based on BTr data. See “NG,” A2
‘Meeting GDP goal needs catchup, spending boost’
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INA NCE Secretar y Benjamin E. Diokno remains confident that the country would still achieve a 6-percent full-year economic expansion this year on the back of an anticipated ramped-up government spending despite a tepid second quarter GDP growth. Diokno emphasized that an “aggressive” catch-up plan for government infrastructure projects coupled with “deliberate spending” by government agencies are “essential” in helping the country’s economy meet the 6 percent to 7 percent growth target for 2023. “The Philippine economy has to grow by 6.6 percent in the second half of the year to achieve the lower end of the 6 to 7 percent growth
target for 2023,” he said in a statement on Sunday. “While there are formidable external challenges, the prospect for achieving this lofty goal is largely in the hands of the current administration,” Diokno said. Diokno noted the 7.1-percent contraction in the government’s final consumption expenditure, which was the lowest since the first quarter of 2011 when it declined by 15 percent. Nonetheless, Diokno explained that countries that depend on exports are more vulnerable to the impact of a slowing global economy. “The Philippines is not as export-dependent as some of its Asean neighbors,” he said. See “Meeting,” A2
EXPLAINER »B4
PUTIN PROFITS OFF US AND EUROPEAN RELIANCE ON RUSSIAN NUCLEAR FUEL
LIFELINE As a young boy tends to his fishing line in a rice field, his hopeful gaze meets the photographer’s lens. In the face of the heightened challenges posed by the southwest monsoon rains threatening Occidental Mindoro’s environment, the steadfast practice of rice cultivation emerges as an indispensable lifeline for the island province’s residents. JOEL C. PAREDES
PINOYS, FIL-AMS AMONG THOSE AFFECTED BY HAWAII WILDFIRE By Malou Talosig-Bartolome @maloutalosig
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ILIPINOS and FilipinoAmericans who are based in Maui, Hawaii are devastated following the raging wildfire that killed at least 89 people in the deadliest such disaster in US history, a Fil-Am community leader said. Kit Zulueta-Furukawa, member of the board of Maui Filipino Chamber of Commerce, said she has no official record on the number of Filipinos affected by the fire but she personally knew some of their members who have lost their homes and are now in emergency shelters. Some have gone missing. “We are such a tight-knit small community,” the 38-year Filipino immigrant told the BusinessMirror. “Almost everyone is a Filipino. Everyone has a cousin, auntie who is a Filipino. Even the Japanese here, they are part Filipino.” She said Maui is such a small island that one can drive around
the island in three hours. “Everyone knows almost everybody. We are like one big family. It’s the culture here in Maui. With that said, a pain of one is a pain of all. All are affected by the fires,” she added. A cursory look at a shared Google Sheet of missing people in Maui fires at https://mauipeople.org shows a number of Filipino-sounding names listed.
Maui fire
ON August 7, a series of fires broke out in three areas in Maui— Lāhainā town, Pulehu /Kihei and Upcounty Maui. Disaster officials estimate 2,207 houses were totally destroyed in the blaze. Hawaii Gov. Josh Green said 89 people died from the fire, and they expect the numbers to go up as only 3 percent of the burned area of Lahaina has been thoroughly searched by dogs. Of the 89 casualties, only two were identified. See “Pinoys,” A2
Speaker cites DA’s tapping Vietnam, India for rice supply By Jovee Marie N. dela Cruz @joveemarie
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PEAKER Ferdinand Martin G. Romualdez on Sunday commended the Department of Agriculture (DA) for beginning talks with Vietnam and India to guarantee the nation’s adequate supply of rice. He emphasized, however, that the government must move quickly to explore all options to ensure supply and a fair price for the staple food of the Filipino people. The Speaker was referring to the recent announcement of DA Undersecretary Domingo Panganiban that upon the directive of President Ferdinand R. Marcos Jr., to open talks with Vietnam, some Vietnamese exporters are offering prices that are $30 or $40 lower than before. Apart from the talks with Vietnam, Panganiban said the Philippine government is also working with India to discuss the possibility of their selling the Philippines some rice on humanitarian grounds, despite its recent ban on all rice exports.
“I commend the Department of Agriculture’s quick response to our efforts in securing a stable and affordable rice supply for our country. This is a significant step towards fulfilling our commitment to the Filipino to put food on their table at prices within their reach,” Romualdez said. It may be recalled that during Romualdez’s bilateral meeting with the President of the National Assembly of Vietnam, Vuong Dinh Hue, in Indonesia last week, the latter gave assurances that Vietnam would provide the Philippines with a stable supply of rice at affordable prices. Romualdez and Hue met on the eve of their participation in the 44th AIPA (Asean Inter-Parliamentary Assembly) General Assembly in Jakarta. “With the current volatility in the price of rice in the world market amid projected supply constriction, the government must waste no time exploring all available options to ensure adequate supply and a reasonable price of our staple food,” Romualdez said. See “Speaker,” A2
PESO EXCHANGE RATES n US 54.8470 n JAPAN 0.3888 n UK 70.5223 n HK 7.0350 n CHINA 7.6712 n SINGAPORE 41.1857 n AUSTRALIA 36.4513 n EU 60.4578 n KOREA 0.0431 n SAUDI ARABIA 14.6239 Source: BSP (July 31, 2023)