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A broader look at today’s business Saturday, June 22, 2024 Vol. 19 No. 249
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ON 20-MO LOW CLOSING, ALDAR DARMAEV VIA DREAMSTIME.COM
PESO MAY DIP FURTHER
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By Cai U. Ordinario
HE Philippine peso could depreciate further against the US dollar level as the upcoming Monetary Policy meeting happens on Thursday next week, according to economists. Data from the Bankers Association of the Philippines (BAP) showed the peso closed at P58.8 to the US dollar on Friday. This marked a 20-month low since since October 24, 2022, when it closed at P58.87 to the greenback. Unionbank Chief Economist Ruben Carlo Asuncion told the BusinessMirror that they expect the peso to trade between P58.5 and P59 against the US dollar next week.
“This is largely based on the clarity of the timing and pace of the BSP [Bangko Sentral ng Pilipinas] rate easing cycle, which we will know next week,” Asuncion said. “Remarks of the BSP Governor will be key.” Bank of the Philippine Islands Chief Economist Emilio S. Neri Jr. also told this newspaper that there is room for further peso depreciation in the short term.
KEYY POINTS: PHP’S 20-MON 20-MONTH LOW AND FORECASTED TRENDS Q Philippine peso hits 20-month low against USD on June 20, 2024. Q Forecasted trading range: P58.5 to P59 next week. Q Depreciation factors: BSP rate easing, economic trends, interest differentials. Q Aligned with Asian and EM currencies. Q BSP predicts BOP surplus despite peso depreciation. Q Experts foresee further weakening, possibly exceeding P60. Q BSP views depreciation as temporary, expects more forex supply. Q Peso’s performance tied to global and domestic economic factors.
This, Neri said, is especially the case if the country’s inflation rate continues to trend downward while US GDP growth and inflation trends slow. “Since these divergent trends will translate to a narrowing interest differentials, PHP will likely join other Asian and EM [emerging market] currencies in this depreciation trend,” Neri told BusinessMirror. However, Neri said, the strengthening of the US dollar could change in the second semester of 2024 as the US Federal Reserve begins its policy easing cycle. “EM currencies including the USD/PHP is weakening against the greenback as Fed keeps higher rates for longer. USD/PHP weakness still better compared to peers. It could still weaken further,” Jonathan L. Ravelas, senior adviser at professional services firm Reyes Tacandong & Co., told the BusinessMirror. Continued on A2
WOOING JAPAN’S FACTORIES Finance Secretary Ralph G. Recto led the Philippine delegation to Japan in wooing Japanese manufacturing giants on Friday, June 21, 2024, to expand their operations in the country, pitching it as Asia’s most strategic hub for cutting-edge production and innovation. The companies included MinebeaMitsumi Inc., the Yokohama Rubber Co., Ltd. and Taiheiyo Cement Corporation. MinebeaMitsumi Inc. is a Japanese multinational manufacturer of mechanical components and electronic devices with three factories in the Philippines. Yokohama Rubber Co. Ltd. manufactures and sells high-quality tires and industrial products. Taiheiyo Cement Corporation is involved in cement, mineral resources, environmental and construction materials globally. Taiheiyo Cement Philippines Inc. (TCPI), headquartered in Cebu, is known for its commitment to investing capital, advanced technologies, and materials supporting infrastructure, mass housing, and commercial development projects in line with the Build, Better, More infrastructure program. The meetings were held on the sidelines of the Philippine Economic Briefing in Japan. Related story on the PEB in A3 News. PHOTO COURTESY OF DEPARTMENT OF FINANCE
Senators to regulators: PUV modernization must be affordable, not jeopardize commuters By Butch Fernandez
NONIE REYES
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HE immediate past chairman and the incumbent head of the Senate Public Services Committee have urged the Executive to come up with a humane and feasible timeline for the Public Utility Vehicles Modernization Program (PUVMP), over which questions remain despite the lapse of the sixth extension given to stakeholders to comply. At the same time, Senator Grace Poe, the former chair, said they aim to ensure, despite regulators’ claims they held proper consultations with stakeholders, to carry out modernization without sacrificing the jobs of thousands and the welfare of commuters. During Friday’s hearing of the Committee on Public Services, Poe said the Department of Transpor-
tation (DOTr) should prioritize the completion of the route plans before reducing the PUV units and provide proper management, accounting, and human resources training, including effective grievance mecha-
nisms, for transport entities. “Let’s find a way to make modernization affordable. Let’s lessen our reliance on expensive imported units. Why is it necessary to get from another country or China if
PRESIDENTIAL SENDOFF President Ferdinand R. Marcos Jr. sends off the members of Team Philippines on Friday night at the Ayuntamiento de Manila in Intramuros. Joining President Marcos are Senators Pia Cayetano and Francis Tolentino, Philippine Olympic Committee president Abraham Tolentino, Philippine Sports Commission chairman Richard Bachmann, members of the paralympic team, coaches, officials and stakeholders. The Paris Games are set July 26 to August 12. NONIE REYES
PBBM declares monthlong holiday for Manila-Cavite Toll Expressway By Samuel P. Medenilla
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RESIDENT Ferdinand R. Marcos Jr. on Friday announced a monthlong toll holiday for the Cavitex Manila-Cavite Toll Expressway. In his speech during the inauguration of the Cavitex C5 Link Sucat Interchange in Parañaque City, the chief executive said he supports the proposal of the Philippine Reclamation Authority (PRA) for the 30-day suspension of the collection of toll fees for the expressway. “We welcome this call and thank the PRA for its initiative to help mitigate the impact of rising fuel costs to our motorists,” Marcos said. The toll holiday will cover all types of vehicles passing through the Manila-Cavite Toll Expressway in Taguig, Parañaque, Las Piñas, Bacoor, and Kawit. “This will introduce our new roads, expressways to those who are in need of that transport system,” Marcos said. “I now count on our Toll Regulatory Board to ensure the immediate implementation, for the benefit of the riding and the public transport,” he added. The President led the inauguration of the Cavitex C5 Link Sucat Interchange and the groundbreaking of the Cavitex-Calax Link and the Cavitex C5 Link Segment 3B. He lauded the said projects, which, he said, will help ease traffic flow in the greater Metro Manila area. He said the new interchange will allow the travel from the Cavitex R1 to Sucat, Parañaque City, within just five minutes and benefit around 23,000 vehicles per day. Meanwhile, the Cavitex-Calax Link, originating from Kawit, Cavite, is a 1.2-kilometer connection, which is expected to improve the road network connectivity from Kawit to the greater Calabarzon region. As for the Cavitex C5 Link Expressway Segment 3B, it is a twokilometer road coming from Sucat Interchange going to E. Rodriguez in C5 Road, Taguig City. “Upon completion, we expect that the travel time from Cavitex R1 Expressway Section to SLEX/C5 Road will greatly be reduced from what is now 40 minutes to 10 minutes,” Marcos said.
we can do it here, which is cheaper?” Poe stressed. “We all want modernization here, but not if thousands will lose their livelihood or transportation. What is the point of jeepney running fast if those who need to be boarded are left behind?” she added. In her opening remarks at the hearing, Poe recalled that lawmakers had started inquiring into the PUV program seven years ago. Throughout that time, “this committee has never stopped asking the Department of Transportation to revisit the program while we begged for cooperation from the drivers-operators and commuters.” When they scrutinized the budget of the Department of Transportation the last time, Poe recalled hearing another promise that the DOTr will revise the program. Continued on A2
PESO EXCHANGE RATES Q US 58.7850 Q JAPAN 0.3699 Q UK 74.4218 Q HK 7.5314 Q CHINA 8.0966 Q SINGAPORE 43.3966 Q AUSTRALIA 39.1273 Q EU 62.9293 Q KOREA 0.0423 Q SAUDI ARABIA 15.6701 Source: BSP (June 21, 2024)