GIR tops $100B for 9th consecutive month T HE country’s Gross International Reserves (GIR) exceeded $100 billion for the ninth consecutive month, according to the latest data from the Bangko Sentral ng Pilipinas (BSP). Philippine GIR reached $104.7 billion in June 2024. This represented a slight decline of $314.7 million or 0.3 percent from the $105.016 billion in May 2024. Bangko Sentral Governor Eli M. Remolona Jr. recently told reporters that some of the country’s reserves were used to stabilize the Philippine peso, which continued to be the sec-
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ond-worst performing currency in the region. “As I said before, we don’t want the peso to depreciate very sharply. We don’t have a target level for the peso. We just don’t want it to depreciate sharply,” Remolona said. Last Friday, the Philippine peso closed at P58.53 to the US dollar, its strongest close since May 2024, based on data from the Bankers Association of the Philippines. The BMI, a Fitch Solutions Company, noted that the the Philippine peso has weakened by nearly 6.2 percent to the dollar on a year-to-date basis.
(See: https://businessmirror.com. ph/2024/07/05/phl-economy-couldgrow-6-2-this-year-as-external-sector-rebounds-says-bmi/). For its part, BSP noted that the decline in GIR on a monthly basis was due to other factors such as debt repayment and lower gold prices. “The month-on-month decline in the GIR level reflected mainly the National Government’s [NG] payments of its foreign currency debt obligations and downward valuation adjustments in the Bangko Sentral ng Pilipinas’ [BSP] gold holdings due to the decrease in the price of gold in the
international market,” BSP said. Meanwhile, on a year-on-year basis, the GIR in June posted a growth of 5.35 percent compared to the $99.387 billion posted in June 2023. BSP noted the latest GIR level represents a more-than-adequate external liquidity buffer equivalent to 7.7 months’ worth of imports of goods and payments of services and primary income. The data also showed that the GIR in June is 6.1 times the country’s short-term external debt based on original maturity and 3.8 times based on residual maturity. See “GIR,” A2
BusinessMirror Monday, July 8, 2024 Vol. 19 No. 265
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YET OVER ON INFLATION By Cai U. Ordinario
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@caiordinario
NFLATION may have slowed in June, but the National Economic and Development Authority (Neda) and the Bangko Sentral ng Pilipinas (BSP) are not convinced that the worst is over in terms of the increase in commodity prices. BSP Governor Eli M. Remolona Jr. said there is a 50-50 chance that inflation could still breach 4 percent in July. Given this, he said, “it’s not yet time to declare victory.” Socioeconomic Planning Secretary Arsenio M. Balisacan said rice prices, for one, are still high because of global prices. He also noted nonfood items were crucial in the 3.7-percent inflation in June 2024. (See: https://businessmirror.com.ph/2024/07/06/june-inflation-at-3-7-prices-still-hurtpoor/). “I cannot say the worst is over, but I think that extreme situations are, I think, not likely anymore,” Balisacan recently told reporters. “Hopefully, we can manage that, walang [there will be no] unforeseen price increases coming from utilities. I think that the BSP’s forecast is quite encouraging.”
Rate cut
REMOLONA said should inflation stay within the 3 to 4 percent target in July, this bodes well for the BSP’s plan to cut rates by August. However, he said this will not lead to larger rate cuts. Earlier, the BSP said the Monetary Board is poised to cut rates in August, ahead of the United States Federal Reserve, which is expected to ease monetary policy by September. (See: https:// businessm ir ror .com. ph /2024/0 6/28/ lowe r-r icetariff-fuels-bsp-interest-ratecut-optimism/). See “Neda,” A2
BEGGING FOR CHANGE A life-size bronze sculpture of Jesus Christ as a beggar sits in front of the National Shrine of Our Mother of Perpetual Help, also known as Baclaran Church, in Parañaque City, catching the attention of curious churchgoers, as seen in this photo taken on July 6, 2024. Created by Canadian sculptor Timothy O. Schmalz, it is titled When I Was Hungry and Thirsty, inspired by the passage from Matthew 25:40: “Truly, I tell you, whatever you did for one of the least of these brothers and sisters of mine, you did for me.” The sculpture aims to evoke kindness and solidarity with the less fortunate. NONIE REYES
28% OF WORKERS LIKELY TO CHANGE EMPLOYERS By Andrea E. San Juan @andreasanjuan
M
ORE employees are likely to change employers in the next 12 months than during the “great resignation” in 2022, as they deal with increasing workload and technological changes in the workplace, among others, according to PwC’s Global Workforce Hopes and Fears Survey 2024.
The survey revealed that the proportion of employees who say they’re very or extremely likely to switch employers in the next 12 months jumped from 19 percent during the “great resignation” in 2022 to 28 percent. The Global Workforce Hopes and Fears Survey explained that the proportion varies by sector. For instance, it noted that employees in asset and wealth management, with 42 percent,
and technology, with 39 percent, were more likely to say they would switch employers. Employees in government and public-sector positions, with 17 percent, and healthcare, 22 percent, were less likely to say such. “Even if employees don’t actually leave their current employers, it’s worth understanding more about those who are looking elsewhere,” the survey See “Workers,” A2
Recto: BTr transparency bid boosted PHL IIF survey score
F
INANCE Secretary Ralph G. Recto said over the weekend that the country’s improved performance in the Institute of International Finance (IIF) survey was due in part to the transparency initiatives of the BTr. Recto noted that out of the 50 countries surveyed by the IIF, the Philippines scored the highest in debt transparency at 12.5 out of 13.
The BTr releases to the public regular comprehensive reports on the central government’s fiscal outturns and debt portfolio. These include the National Government Cash Operations Report (COR), which outlines the actual monthly and annual revenue collections, expenditures, and financing of the national government. See “Recto,” A2
PESO EXCHANGE RATES n US 58.6430 n JAPAN 0.3638 n UK 74.8343 n HK 7.5096 n CHINA 8.0668 n SINGAPORE 43.3878 n AUSTRALIA 39.4374 n EU 63.4165 n KOREA 0.0425 n SAUDI ARABIA 15.6331 Source: BSP (July 5, 2024)