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A broader look at today’s business
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Monday, December 23, 2024 Vol. 20 No. 75
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NEDA CHIEF: REENACTED BUDGET ‘COSTLY’ TO PHL By Cai U. Ordinario
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@caiordinario
HE country’s Chief Economist warned that a reenacted budget would be “costly” for the Philippine economy as it could delay projects and lead to wasted resources.
In an interview, National Economic and Development Authority (Neda) Secretary Arsenio M. Balisacan told BusinessMirror that while he does not want to preempt the President’s decision on the national budget, a re-enacted budget—which some quarters deem the lesser evil to a defective one like the enrolled bill now under Palace review—is not what the economy needs at this time. “It’s [re-enactment of the budget] costly to the economy, apart from raising suspicion that you are doing something with the reenacted budget,” the Socioeconomic Planning Secretary told this newspaper. “That [to approve, veto or reenact the budget] will be a decision that See “Neda,” A2
ALL SPRUCED UP The iconic Acacia tree at the University of the Philippines Los Baños (UPLB) takes center stage in Paskong UPLB 2024. Adorned with shimmering blue Christmas lights, the tree creates a magical glow, adding a festive accent to the campus grounds. A popular spot for students and visitors, it lights up not just the night but also countless social media feeds. NONIE REYES
PAPER BILLS TO ‘CO-CIRCULATE’ WITH A BILLION POLYMER NOTES
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HE Philippines has nearly a billion pieces of polymer banknotes this year and even more in the years to come, according to the Bangko Sentral ng Pilipinas (BSP), even as it clarified that the release of the polymer banknote series will not phase out existing paper banknotes. In a recent briefing, BSP Currency and Securities Production Sub-Sector Assistant Governor Mary Anne P. Lim said there could be at least 70 to 90 million pieces per denomination—P500, P100, and P50—of the polymer banknotes.
Along with the 661 million pieces of P1,000 polymer banknotes already in circulation, this mean the banknotes available from the new series could reach anywhere from 871 to 930 million pieces this month. “Since this is an initial launch of the polymer banknote series, we will have limited quantities in about 70 to 90 million per denomination for the P500, P100, and the P50,” Lim told reporters. “For the 1,000, it has been there. We have issued a lot of the See “Paper,” A2
External risks may prompt ‘modest’ rate cut by BSP
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XTERNAL risks which include geopolitical factors could prompt the Bangko Sentral ng Pilipinas (BSP) to reduce rates by “a modest” 50 to 75 basis points next year, according to US-based think tank GlobalSource Partners. In his latest note, GlobalSource Partners country analyst Diwa Guinigundo said these external risks hinge on the Trump administration’s higher tariff policy, tax cuts, and mass deportation. Guinigundo said these could lead to higher inf lation in the US, prompting the Federal Reserve to “go slow” in reducing policy rates. The Philippine peso, he said, could not escape the im-
pact brought by the slowdown in the Fed’s easing stance. “Tension could remain elevated given the sustained hostility in the Middle East and Eastern Europe. They could have collateral impact on external trade and capital flows and ultimately, peso depreciation and domestic inflation,” Guinigundo also said. “Should these upside risks eventuate, we may not be looking at 100 bps reduction for 2025 but perhaps at a more modest 50 to 75 bps reduction. As the BSP would put it, the final decision will continue to be data-driven,” he added.
»EXPLAINER | B4
REDEFINING AMERICAN IDENTITY
TRUMP’S PUSH TO END BIRTHRIGHT CITIZENSHIP
See “External,” A2
PESO EXCHANGE RATES n US 58.9980 n JAPAN 0.3748 n UK 73.7829 n HK 7.5935 n CHINA 8.0879 n SINGAPORE 43.3586 n AUSTRALIA 36.7912 n EU 61.1455 n KOREA 0.0408 n SAUDI ARABIA 15.7056 Source: BSP (December 20, 2024)