Wider digital transactions base needed for PDP
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HE Bangko Sentral ng Pilipinas (BSP) said there is a need to broaden the base to increase digital transactions nationwide for the country to attain its Philippine Development Plan (PDP) targets. In a briefing on Wednesday, BSP Deputy Governor Mamerto E. Tangonan said digital transactions per individual are currently increasing, but more customers must be added to those making digital transactions. Tangonan said about 10 million Filipinos are using InstaPay for digital transactions and their transactions are increasing. However, more needs to be done to
reach non-users. “We need to broaden the base because the numbers we’re seeing is like for Instapay, there are just 10 million unique customers using it,” Tangonan said. “Given the governor’s data-driven approach, the key intervention that we need to do now is really to broaden the base and make digital payments attractive to non-users who are typically those who still don’t trust the system, those who still don’t have access, and so on,” he explained. Under the PDP, the country needs to see the share of digital payments increase to 60 to 70 percent of total retail payment trans-
actions by 2028. For 2023, the target is to increase digital payments to 50 percent. Tangonan said while the data will be released in July, there are indications that this will be attained. These indicators include PesoNet and InstaPay breaking the record number of transactions every month. Tangonan said this has been happening for several months. “Just by looking at those and also the growth in the cards payments, they give us confidence that the 50 percent [target] by 2023, would be achieved. But give us until July to confirm,” Tangonan said. Data from the Annual Poverty
Indicators Survey 2022 released by the Philippine Statistics Authority (PSA) showed that 65.3 percent of families nationwide used the internet in the last six months or between January and June 2022. There were 26.942 million families nationwide in 2022. More than half or 59.7 percent of these families used the internet for buying goods and services; 27.2 percent for bills payment; 18.2 percent for banking; 11.7 percent for other transactions; and 8.8 percent for selling. Among the regions, Calabarzon had the highest percentage of
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Thursday, March 7, 2024 Vol. 19 No. 144
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‘TOO SOON’ TO DECLARE
VICTORY VS. INFLATION By Cai U. Ordinario @caiordinario
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T’S too early for the country to “declare victory” against inflation, giving the Bangko Sentral ng Pilipinas (BSP) more reason to keep monetary policy tight longer than expected.
In a briefing on Wednesday, BSP Governor Eli M. Remolona Jr. told reporters that the monetary authorities do not expect any rate cuts soon. However, Remolona said it is also unlikely that the Monetary Board, the highest policy-making body of the BSP, will increase rates further. “You saw the inflation number yesterday [Tuesday]. It’s well within what we thought [it] would be. So, our models are more or less right. The models and the data seem to suggest that it’s still too soon to declare victory,” Remolona said. “We seem to be on our way [to meeting our targets]. But there’s not enough data to assure us that we will settle comfortably within our target range of 2 to 4 percent. See “Inflation,” A
HEAT IS ON: FARMERS BATTLE RISING INFLATION AND EL NIÑO
As Philippine inflation rises amid the challenges posed by El Niño, farmers in Mabitac, Laguna, carry on with their crucial tasks despite the adversities. In the face of widespread water shortages induced by El Niño, the agricultural sector faces significant hurdles, with crop production damage being highest at this period. This impact extends beyond upland and rainfed areas to lowland irrigated areas like Mabitac. After meticulously tending to newly planted palay seedlings and applying fertilizers and pesticides, farmers now turn their attention to the essential task of irrigating the farm plots using the traditional “paiinumin” method. BERNARD TESTA
JCR KEEPS PHL CREDIT RATING House panel okays RBH 7 ON GROWTH, DEBT-GDP RATIO in bid to fast-track Cha-cha
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HE country’s economic growth last year and debtto-GDP ratio were cited by the Japanese credit rating agency as reasons for keeping the Philippine rating investment grade, according to the Bangko Sentral ng Pilipinas (BSP). In a statement on Wednesday, BSP said the Japan Credit Rating Agency Ltd. (JCR) has kept the Philippines’s investment-grade credit rating of “A-” with a stable outlook. BSP said the JCR noted that the country’s economic growth, underpinned by domestic demand and resilience to external shocks, helped maintain the Phil-
ippines’s rating. “Our external payments position will continue to remain manageable, supported by sustained foreign exchange inflows from Overseas Filipino remittances, business process outsourcing revenues, foreign direct investments, and tourism receipts. In addition, the country maintained ample foreign exchange reserves,” BSP Governor Eli M. Remolona Jr. said. BSP added that JCR noted the country’s low-level external debt, accumulated foreign exchange reserves, and solid fiscal base as Continued on A
By Jovee Marie N. Dela Cruz @joveemarie
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HE Committee of the Whole House of Representatives on Wednesday approved Resolution of Both Houses (RBH) No. 7, which seeks to lift foreign equity limits on education, public utilities and advertising in the 1987 Constitution. The House Committee of the Whole of the House approved RBH 7, entitled A Resolution of Both Houses of Congress Proposing Amendments to Certain Economic Provisions of the 1987 Constitution of the Republic of the Philippines, Particularly on Articles Xll, XlV, and XVl, through viva vice voting.
On the same day, the panel also approved the committee report on RBH 7. Deputy Majority Leader and Mandaluyong City Rep. Neptali Gonzales II, who was designated majority leader of the committee, moved to terminate the hearings. He then presented a motion to approve RBH No. 7, which embodies the proposed amendments. Shortly after, Majority Leader and Zamboanga City Rep. Manuel Jose M. Dalipe, who was presiding over the hearing, declared the resolution approved. Gonzales said RBH 7 has been exhaustively deliberated in the previous six hearings. See “Cha-cha,” A
PESO EXCHANGE RATES US 56.0020 Q JAPAN 0.3733 Q UK 71.1617 Q HK 7.1577 Q SINGAPORE 41.7147 Q AUSTRALIA 36.4181 Q SAUDI ARABIA 14.9327 Q EU 60.8126 Q KOREA 0.0419 Q CHINA 7.7813 Source: BSP (March 6, 2024)