PHL ends 2024 with over $100-B reserves By Cai U. Ordinario @caiordinario
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THE WORLD | A8
US PRESSURE MOUNTS AS ISRAEL, HAMAS NEGOTIATE TO END 15-MONTH GAZA WAR
HE country ended 2024 with its dollar reserves at over $100 billion for the second consecutive year, according to the Bangko Sentral ng Pilipinas (BSP). Ba sed on t he pre l i m i n a r y d at a f rom t he cent ra l ba n k , t he cou nt r y ’s Gross Inter nat iona l Reser ves [GIR] reac hed $10 6.8 4 bi l l ion as of t he end of December 2024. The data showed the GIR was at $103.75 billion as of the end of 2023. Prior to 2023, the GIR also breached $100 billion in 2021 at $108.79 billion and 2020 at
$110.12 billion. “The BSP’s reserve assets consist of foreign investments, gold, foreign exchange, reserve position in the IMF (International Monetary Fund), and special drawing rights,” the BSP said. However, the GIR declined 1.52 percent from the $108.49 billion posted as of the end of November 2024. It can also be noted that the GIR, which peaked at $112.7 in September 2024, has been in decline for the past three months. “ T he month-on-month decrease in the GIR level reflected mainly the BSP net foreign exchange operations; drawdown on the national government’s [NG]
deposits with the BSP to pay off its foreign currency debt obligations; and downward valuation adjustments in the BSP’s gold holdings due to the decrease in the price of gold in the international market,” the BSP said. BSP said the latest GIR level represents a more-than-adequate external liquidity buffer equivalent to 7.5 months’ worth of imports of goods and payments of services and primary income. However, this import cover is the lowest since May when the import cover was also 7.5 months. The lowest import cover of the GIR was recorded at 7.4 months, posted in April and February 2024. “By convention, GIR is viewed
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 said. Meanwhile, BSP data showed the GIR is about 3.8 times the country’s short-term external debt based on residual maturity. The BSP explained that shortterm debt based on residual maturity refers to outstanding external debt with original maturity of one year or less, plus principal payments on medium- and longterm loans of the public and private sectors falling due within the next 12 months. See “Reserves,” A2
A broader look at today’s business www.businessmirror.com.ph
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Wednesday, January 8, 2025 Vol. 20 No. 88
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GOVT DEBT BREACHES P16T AS PESO WEAKENS By Reine Juvierre S. Alberto
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@reine_alberto
HE government’s outstanding debt climbed by 10.9 percent year-on-year to a new all-time high of P16.090 trillion as of the end of November 2024, according to the Bureau of the Treasury (BTr). Latest data from the Treasur y showed the government’s debt during the period was more than P1 tr illion higher than the P14.508 trillion recorded in November 2023. Net financing and peso depreciation also increased the value of foreign-denominated debt, pushing the outstanding debt by 0.4 percent from P16.020 trillion in October 2024. The peso depreciated against the US dollar to P58.602 as of endNovember 2024 from P58.198 as of end-October 2024. Broken dow n, the gover nme nt ’s debt i s comp ose d of 67.87 percent of domestic securities and 32.13 percent of foreign obligations.
Domestic debt amounted to P10.921 trillion as of end-November 2024, higher by 0.3 percent than the P10.889 trillion in endOctober 2024. The P30.67 billion net issuance of domestic securities and the P1.15 billion effect of peso depreciation on US dollar-denominated domestic debt drove the increase, according to the Treasury. Year-on-year, domestic debt expanded by 9 percent from P10.024 trillion. Government securities reached P10.921 trillion, accounting for the bulk of domestic debt. This increased by 9 percent from P10.024 trillion a year ago. See “Debt,” A2
GERMAN FIRMS LOOK MORE FAVORABLY ON PHL–POLL By Andrea E. San Juan @andreasanjuan
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HE Philippines stood out in the most recent World Business Outlook Sur vey of the German Chambers, as more German firms expressed an intent to expand employment and increase investments in the Southeast Asian nation this year. Accord ing to t he 2024 AHK World Business Outlook Survey, a survey of the member companies of the
German Chambers of Commerce Abroad, the Philippines “demonstrated impressive results compared to its Asean neighbors and global peers.” “Employment projections were a standout, with 54 percent of businesses expecting workforce expansion—the highest sentiment globally,” the German-Philippine Chamber of Commerce and Industry (GPCCI) noted in a statement on Tuesday. See “German,” A2
HIGH-RISE, LOW DEMAND A 4-tower mid-rise condominium spanning 20,188 square meters, with 3,240 residential units, is under construction along Payatas Road, Quezon City, as seen on Tuesday, January 7, 2024. Data from Leechiu Property Consultants (LPC) reveals a surge in condominium oversupply, now equivalent to 34 months of inventory as of November, following a sudden spike in unit cancellations. This marks a sharp increase from the 29 months of supply recorded in Q3. Meanwhile, the National Human Settlements Board has capped rental increases at 4 percent (or P400) for residences rented out at P10,000 and below, aiming to ease tensions between tenants and landlords. NONOY LACZA
Costly goods seen spurring search for gigs, better jobs By Cai U. Ordinario
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ASTER inf lation has not only prompted Filipinos to scrimp on goods and services but it may also push them to look for better jobs or an additional source of income to prevent them from falling below the poverty line, according to economists. On Tuesday, the Philippine Statistics Authority (PSA) reported that inflation accelerated to 2.9 percent in December 2024 and averaged 3.2 percent in 2024. (See: https://businessmirror. com.ph/2025/01/07/inflationsurges-to-2-9-in-dec-2024-fast-
est-since-aug-2024-psa/) Data obtained from the PSA showed the increase in inf lation has eroded the value of a hundred peso to P79. This means, Filipinos need to shell out P121 today to purchase P100 worth of goods in 2018. “As real incomes fall, people are getting [fewer] goods than they did before. Since inf lation affects the middle income households heavily, we expect poverty to increase,” Ateneo de Manila University economist Leonardo Lanzona told BusinessMirror. “In the process, this increase in
NOTICE OF FILING OF APPLICATION/S FOR ALIEN EMPLOYMENT PERMIT/S (AEP/S) Notice is hereby given that the following companies/Employers have filed with this Regional Office application/s for Alien Employment Permit/s: ESTABLISHMENT / ADDRESS No.
NAME OF FOREIGN NATIONAL , POSITION AND BRIEF DESCRIPTION
QUALIFICATION AND SALARY RANGE
BLUE NIGHT LIVING SERVICES INC. Room 2e 2nd Floor Lot 10 Block 29, Magsaysay Street Afpovai Phase 2, Western Bicutan, City Of Taguig WONG, HO LEUNG Mandarin Customer Service Officer 1.
Brief Job Description: Opens customer records by updating account information.
Basic Qualification: Proficient in speaking, reading, and writing in Mandarin language. Salary Range: Php 30,000 - Php 59,999
See “dole ncr” on A5 See “Inflation,” A2
PESO EXCHANGE RATES n US 58.2610 n JAPAN 0.3697 n UK 72.9661 n HK 7.4931 n CHINA 7.9516 n SINGAPORE 42.7353 n AUSTRALIA 36.3723 n EU 60.5390 n KOREA 0.0399 n SAUDI ARABIA 15.5156 Source:
BSP (7 January 2025)