‘Temporary forex tweaks cool inflation’ ‘Close borders, cutmay Omicron exposure risk’ By Cai U. Ordinario By Cai U. Ordinario
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@caiordinario @caiordinario
OREIGN exchange interventions LOSING the country’s borders may also help cool inflation in is one of the most immediate the Philippines apart from raiscourses of action the governing interest rates, according to the ment must take to prevent the latInternational Monetary Fund (IMF). est Covid-19 variant, Omicron, from In its latest Regional Economic reaching Philippine shores, accordOutlook for Asia Pacific, IMF said, ing to local economists. however, these interventions should T he new var iant is a threat, only be temporary in order to avoid e s p e c i a l l y w it h t he hol id ay s side effects such as “risk-taking in the coming up and more foreigners private sector.” being a llowed to travel to the IMF noted that foreign exchange Philippines, De La Sa lle Univerinterventions are often used along sit y economist Mar ia Ella Oplas with policy rate hikes to “mitigate overtold BusinessMirror. shooting and pass-through inflation.” The holidays usually bring in The weak peso has also contributed to Overseas Filipino Workers (OFWs) the increase in prices as the country who are eager to spend Christmas
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WHY DID ELON MUSK JUST SPEND BILLIONS TO TAKE OVER TWITTER?
remains a net food and fuel importer. with their loved ones, while for“This tool [foreign exchange intereigners living in temperate regions vention] could be particularly useful usually want to relax in tropical among Asia’s shallower foreign excountries like the Philippines. This change markets where interventions year’s influx of OFWs is expected to are potentially more effective and be heavier since many of them were can help avoid a de-anchoring of inunable to come home for the holidays flation expectations—for instance, in December 2020. Philippines—and in those economies “My recommendation is to protect where currency mismatches on bank the borders. Do not allow people with or corporate balance sheets give rise a history of travel to countries with to risks from exchange rate volatility positive cases to enter,” Oplas said. —for instance, Indonesia,” the report “We should be more restrictive. [We stated. have to be] more protective in terms IMF noted that the Philippines, Inof our measures.” dia, Indonesia and Thailand were among Oplas said that while this will be the Asian emerging market and devela setback to some industries, this oping economies that have already seen is a fair measure considering that decumulation of international reserves this could help prevent placing the of between 3 and 10 percent in the first country in another strict lockdown,
Monday, November 29, 2021 Vol. 17 No.52 n Monday, October 31, 2022 Vol. 18 No. 19
semester of 2022 due to “intense exterwhich, she said, the economy can no nal financial shocks.” longer afford. “The judicious use of foreign ex“It is better that we do protective change intervention should allow for preventive measures than get exmacroeconomic adjustment to take posed again. We have a lot to lose,” place and could temporarily ease the Oplas said. “We should do it now so burden on monetary policy, allowing it that we can open just before Christto stay focused on stabilizing domestic mas. If it gets contained, we can open demand,” IMF said. it again.” Ateneo Center for Economic ReSlow growth search and Development (ACERD) MEANWHILE, the same report disAssociate Director Ser Percival closed that the IMF expects Philippine K. Peña-Reyes said closing the GDP growth to be slower this year and country’s borders would be effecin 2024 compared to July. tive but should still adhere to the Based on IMF’s latest projections, standards set by the World Health GDP is now expected to average 6.5 Organization (WHO). percent in 2022; 5 percent in 2023; and What is needed, Peña-Reyes told 6 percent in 2024. this newspaper, is for travel restricSee “Forex,” A2 tions to be put in place swiftly and
for government to be proactive in imposing them. Previous instances when the country had the opportunity to impose travel restrictions did not prevent the spread of Covid-19. That was mainly because the decision was not made immediately, he said. “Kung papatay patay [If we’re slow] and we get caught flat-footed, [that’s risky] We were too reactive instead of proactive before. We should learn from that,” PeñaWITHsaid. this“It’s issue, we closebalancing our Reyes a delicate 17TH ANNIVERSARY act.month-long We need to push testing and tracing to be and properly celebration, offer a informed Second of Folio our decisions. Blanket/shotgun to mark this milestone, approaches could have dire consefrom Sections D to G. quences on the economy.” See “Omicron,” A2
NATL GOVT BORROWINGS NG GROSS BORROWINGS FOR 10 MOS DIP TO P2.75T IN 9 MOS DIP 28% TO P1.86T w w
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By Bernadette D. Nicolas By Jasper Emmanuel Y. Arcalas
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@BNicolasBM
P25.00 nationwide | 2 sections 20 pages | P25.00 nationwide | 7 sections 40 pages |
Omicron risk spurs revival of quarantine rules in PHL
@jearcalas
HE HE national national government’s total gross borrowings from January to government’s September declined by 28.25 percent gross on an annualasbasis borrowings of to P1.867 trillion, latest Bureau of theshrank Treasury (BTr) data showed. end-October by almost 6 percent year-on-year The end-Septemberto total boris nearly 85 percent of the P2.2rowings was P735.33 billion lower trillion total borrowing target set P2.75 trillion. than the P2.6 trillion recorded in by the national government this
By Samuel P. Medenilla @sam_medenilla
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NTER NATIONA L concerns over the possible spread of the more infectious Omicron Cothe same period of last year. year. vid-19 variant prompted the govThe 9-month gross borrowings See “Gross borrowings,” A2 Latest data from the Bureau of the ernment to reimpose mandatory Treasury showed that the governfacility-based quarantine for all ment’s gross borrowings during the arriving passengers in the country. 10-month period fell by 5.99 percent Acting Presidential spokesperfrom P2.92 trillion a year ago. son Karlo B. Nograles announced With only two months left for on Sunday that the Inter-Agency this year, the latest figure is already Task Force for the Management equivalent to 89.6 percent of its of Emerging Infectious Diseases By Dennis Estopace “We have seen it [impact P3.07-trillion borrowing program. (IATF) suspended the implemen@DennisEstopace of a strong dollar on the perBroken down, gross domestic bortation of its Resolution No. 150sonal remittance market] as rowings from January to October A (s.2021), effectively imposing HE personal remittance half of flows originate in the settled at P2.23 trillion, down by stricter protocols for all inbound market will remain resilUS,” Robert Mitchell, CFO 5.08 percent from P2.35 trillion travelers. ient despite a weak peso of World R em it bra nd op in 2020. To note, IATF Resolution 150and possible recession from erator Zepz Group, told the The bulk of the amount was A had allowed fully vaccinated source markets, an executive BusinessMirror. PEOPLE walk past the mural of Gat Andres Bonifacio at Manila City Hall Underpass. sourced from Fixed Rate Treasury non-visa travelers from Green List of a cash-transfer operator said. A8158th birth anniversary of Filipino revolutionary The countryContinued will celebrateonthe Bonds (P1.19 trillion), followed by areas to enter the country withhero Gat Andres Bonifacio on Tuesday, November 30. ROY DOMINGO out the need for facility-based short-term borrowings from BangBUSINESS AS USUAL A “chicharron” (pork rind) vendor walks through knee-deep floodwaters in Barangay Talaba in Bacoor, Cavite to sell his wares as tropical storm Paeng spawned massive quarantine as long as they secure ko Sentral ng Pilipinas or BSP (P540 rainfall and strong winds at the weekend. Stories on “Paeng” in pages A4, A8 and A9. ROY DOMINGO billion), Retail Treasury Bonds/Prenegative Reverse Transcriptionmyo Bonds (P463.3 billion), Retail Polymerase Chain Reaction (RTOnshore Dollar Bonds (P80.84 bilPCR) test within 72 hours prior lion). In the same period, there was to their departure. also a net redemption of Treasury “Except for countries classified By Jasper Emmanuel Y. Arcalas dating its registry following the them. This allows everyone to see programs as President Duterte Bills amounting to P43.94 billion. as ‘Red,’ the testing and quarantine @jearcalas enactment of the Coconut Farmwho are listed in the registry and if is expected to sign the industry By Andrea E. San Juan the EU Parliament Committee on and on a permanent basis; provide a fact, the Department of Trade and Net debt redemption means protocols for all inbound internaers and Industry Trust Fund law. farmer doesn’t see his name then he development plan in early 2022. International Trade (INTA). conducive framework for attracting Industry (DTI) said in a statement there were more debts repaid comtional travelers in all ports of entry ORE than 3 million Rosales explained that about shall coordinate with the PCA imRosales said the PCA will not RADE Secretary Alfredo E. Citing a 2020 study, Pascual said greater investments from the EU; on Sunday that the Philippines has pared to the amount borrowed durshall comply with the testing and coconut farmers and 500,000 coconut farmers and mediately,” he explained at a recent stop updating its list of coconut Pascual said the Philippines that 83 percent of German compaand be on a par with other Asean increased its export to the EU from ing the period. quarantine protocols for ‘Yellow’ workers are now regisworkers were added to the PCA’s dialogue with coconut farmers. farmers and enjoined them to regis “ready to work” toward the nies want to resume the FTA negotiamember states who are aggressively €5.3 billion in 2014 to €7.77 billion Meanwhile, gross foreign borlist countries,” Nograles said, citing tered with the government’s reg2018 list that had about 2.5 million “On the other hand, if people ister in order to reap the benefits resumption of negotiations of the tions, citing the huge potential for EU pursuing FTAs with the EU. in 2021, of which 26 percent were rowings in the same period also the provision of IATF Resolution istry, which serves as the basis coconut farmers and farm workers. would see names on the list and of the decades-long idled coconut Philippine-European Union (EU) companies, with the FTA “positively” Aside from the need to resume exported through GSP+ or €2.03 contracted by 9.7 percent to P518.7 No. 151-A. for the number of people to be The PCA’s next step is to conthey think they are not coconut levy fund. “We will not stop at 3.1 free trade agreement (FTA). affecting competitiveness. talks on FTA, the Trade chief also billion. billion from last year’s P574.4 billion. He noted Hong Kong, which has covered by the utilization of the duct an exclusion-inclusion profarmers or their details are incormillion. We hope that more indi“Given the positive developThe European Union is the Philstressed that the EU- GSP+“not only Further, the Trade department This was raised through global confirmed a case of the Omicron P75-billion coconut levy fund. cedure by making the updated rect, they can report it to the PCA viduals will register in our coconut ments in the country and the valippines’s 5th largest trading partstrengthens the bilateral economic noted that the Philippines recorded bonds (P146.17 billion), program variant, will also fall under the YelPhilippine Coconut Authority farmers’ registry public, providfor immediate action,” he added. farmers registry,” he said. MILESTONE Wilcon Depot, the country’s leading home improvement and construction ues and principles we shared, the ner in 2020. The country’s “strategic relations of the EU and the Philipits “highest utilization rate” in EU loans (P139.98 billion), euro-delow list countries. (PCA) Deputy Administrator Roel ing everyone the opportunity to The PCA official noted that The updating of the coconut Philippines remains interested and objectives” in engaging the EU in an pines but it also promotes socioecoGSP+ at 76 percent. Some of these supplies retailer, recently celebrated its 45 years in the business. Leading the ceremonial toast nominated bonds (P121.97 billion), The suspension of the rules for M. Rosales said about 3.11 million check the veracity of the list, Rothe completion of the initial list farmers registry is mandated by therefore ready to work toward the FTA are: secure additional duty-free nomic development in the country.” exports, it noted, include tuna, virduring their milestone anniversary event on October 27, 2022 at Okada Manila are (L-R) Wilcon a project loan (P86.41 billion), and “Green List” countries will be in coconut farmers and farm worksales added. of coconut farmers registry would Republic Act (RA) 11524 or the resumption of negotiations of the market access beyond those covered Since 2014, the Philippines has gin coconut oil, processed fruits, Depot Director Mark Belo, EVP-Chief Product Officer Careen Belo, President and CEO Lorraine effect from November 28, 2021 to yen-denominated samurai bonds ers have been registered with the “The list will be posted in public be just in time for the expected Coconut Industry Trust Fund Act. Philippine-EU FTA,” Pascual said under the Generalised Scheme of enjoyed enhanced trade preferencand spectacle lenses. Belo-Cincochan, Founder and Chairman Emeritus William Belo, SEVP-COO Rosemarie Ong, SVP for December 15, 2021. (P24.19 billion). government since it started upspaces where people can easily see rollout of coconut levy-funded See “3-M farmers,” A2 on Thursday as he spoke before Preferences Plus (GSP+) scheme es with the EU under the GSP+. In Continued on A8 Product Development Eden Godino, and SVP for HR Grace Tiong. CONTRIBUTED PHOTO
REMITTANCE MARKET RESILIENT AMID STRONG $, RECESSION RISK
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OVER 3-M FARMERS LISTEDtoFOR P75-B LEVY FUND PHL ‘ready work’ on COCO resuming FTA nego with EU
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See “Borrowings,” A2
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PESOEXCHANGE EXCHANGE RATES JAPAN 0.3984 67.4450 n HK n CHINA 8.0686 7.9013 n SINGAPORE 41.3566 36.8968 n AUSTRALIA 37.6132 n36.2807 EU 58.1073 n 56.5758 KOREA 0.0410 n SAUDI ARABIA 15.5207 Source: BSP (October26, 28,2021) 2022) PESO RATESnnUSUS58.2880 50.4600nn JAPAN 0.4374n UK n UK 67.2329 n 7.4260 HK 6.4722 n CHINA n SINGAPORE n AUSTRALIA n EU n SAUDI ARABIA 13.4531 Source: BSP (November