Philippines Gross Reserves Rise up to $81 Billion US Dollars end June 2014 to up $88 Billion end 2014

 

Philippines International Gross Reserves may rise up to $88 Billion US Dollars end of 2014. Photo: the-icsgroup.com

 

The Philippines' foreign exchange reserves rose for the fourth consecutive month in June to $80.7 billion as foreign money in various forms continued to flow into the country, the central bank reported Monday.

Documents released Monday showed the country’s gross international reserves (GIR) rose to their highest level for the year and remained more than ample to protect the country from external crises.

The increase in reserves was due mainly to the revaluation adjustments on the BSP’s gold holdings, net foreign currency deposits by the Bureau of the Treasury, and income from the BSP’s investments abroad.

“These inflows were partially offset by payments for maturing foreign exchange obligations of the national government,” the BSP said in a statement.
At the end of June, the country’s GIR was up by half a billion dollars from the month before. Year-on-year, however, the reserves were still lower than the $81.22 billion in June of 2013.
The country’s reserves, which are held by the central bank, serve as a line of defense for economic shocks that lead to shortages in dollars that the government and businesses need to do business with the rest of the world.

A shortage of foreign exchange would force local businesses and the government to buy dollars from outside at higher prices, which would bring the value of the peso down. A weaker peso makes imported goods more expensive. For the government, it increases the cost of servicing foreign obligations, straining the state’s resources.
The GIR remained enough to cover 11 months’ worth of imports of goods and payments of services and income. This is higher than the international benchmark of three months. It is also equivalent to 7.7 times the country’s short-term external debt based on original maturity.

Last week, BSP Deputy Governor Diwa C. Guinigundo said the official forecast for the Philippines' yearend reserves was up for review. He said massive outflow of foreign exchange in the form of investments at the start of the year might result in a more “conservative” forecast.

As it stands, the BSP expects to end the year with as much as a record $88 billion in reserves. -Business World Online

Continue reading

IN PHOTOS: Philippines- USA troops hold drills near Spratly Islands

A Philippine Navy personnel stands in front of an AgustaWestland AW109 helicopter before it takes off during the bilateral maritime exercise between the Philippine Navy and U.S. Navy dubbed as Cooperation Afloat Readiness and Training (CARAT), aboard the Philippine Navy vessel BRP Ramon Alcaraz in the South China Sea. AP/Noel Celis

SAN ANTONIO, Philippines — More than 100 Filipino and U.S. marines in assault amphibious vehicles conducted a mock assault on imaginary enemies in military drills Monday on a beach in northwestern Philippines fronting the South China Sea, where Manila is locked in a territorial dispute with China.

The amphibious tanks sailed from a U.S. ship anchored a distance away, then rolled onto the beach of San Antonio, Zambales, northwest of the Philippine capital Manila, disgorging the Filipino and American sailors and marines armed with automatic rifles.

The exercise is part of the annual Cooperation Afloat Readiness and Training that the U.S. conducts with its allies in Asia, including the Philippines, to address maritime security, strengthen partnerships and enhance interoperability.

A member of Philippine Navy loads bullets for a machine gun during the bilateral maritime exercise in the South China Sea waters claimed by Beijing, Sunday, June 29, 2014. AP/Noel Celis

Sailors assigned to the Arleigh Burke-class guided-missile destroyer USS John S. McCain depart the Philippine navy frigate BRP Ramon Alcaraz (PF16). Philstar.com/US Navy/Jay Pugh

A member of U.S. Navy mans a weapon during CARAT 2014. AP/Noel Celis

U.S. Navy personnel raise their flag during CARAT 2014. The United States and the Philippines kicked off joint naval exercises in the South China Sea near waters claimed by Beijing, amid tense territorial rows between China and its neighbors AP/Noel Celis

U.S. and Philippine Navy officers stand for an invocation during the opening of the 20th Cooperation Afloat Readiness And Training (CARAT) joint U.S.-Philippines naval exercise at the former U.S. naval base of Subic. AP/Bullit Marquez

The Arleigh Burke-class guided-missile destroyer USS John S. McCain (DDG 56) transits into Subic Bay. Philstar.com/US Navy/Jay Pugh

Rear Adm. Jaime S. Bernardino, commander of the Philippine Fleet, shakes hands with Rear Adm. Stuart B. Munsch, commander of Task Force 74, during the opening ceremony. Philstar.com/US Navy/Jay Pugh

The Arleigh Burke-class guided-missile destroyer USS John S. McCain (DDG 56) is moored in Subic Bay. Philstar.com/US Navy/Jay Pugh

Members of the U.S. and Philippine navies salute during the opening ceremony of Cooperation Afloat Readiness and Training (CARAT) 2014. Philstar.com/US Navy/Jay Pugh

Lt. j.g. Raymond Piana, navigations officer of the Whidbey Island-class amphibious dock landing ship USS Ashland (LSD 48), center, shows a chart to Philippine marine Col. Custodio Parcon, left, during a tour of the ship's pilot house. Philstar.com/US Navy/Raymond Diaz III

Officials say the maneuvers are meant to improve coordination and capabilities but are not directed at China, which has been criticized for its increasingly assertive behavior in disputed South China Sea territories.

"Whenever we do an exercise, we always train to improve our capabilities, it is not meant for whatever threat or situation that are current," said Philippine Navy Commodore Roland Joseph Mercado.

Marine Maj. Damon Torres, commanding officer of the U.S. landing force in the exercise, said the drills are a good opportunity to coordinate and learn about each other's capabilities. - Philstar

 

Continue reading

Standard Charter Bank upgrades Philippines GDP, foreseen growth to 7.1%

Standard Chartered Bank. Photo: ABC 

Standard Chartered Bank has just upgraded its economic growth forecast on Saturday, May 24, for the Philippines this year.

In a report, StanChart stated it hiked its full-year estimation to 7.1-percent from the earlier forecast of 6.7-percent. In light of its full-year upgrade, StanChart sees Philippine gross domestic product (GDP) having expanded in the first quarter at about the same pace as to that 6.5-percent in the fourth quarter of last year.

In sudden growth of the country's economic growth forecast, the bank cited strong growth from both domestic consumption and exports, as well as expectations of a pickup in natural disaster's rehabilitation later in the year.

StanChart also upped its first quarter GDP forecast growth to 2.4 percent from 1.5 percent in the end quarter of 2013.

Sales abroad of Philippine-made goods significantly increased by 6.5-percent in the first quarter. This was despite a new truck ban policy, which implemented by City Mayor Joseph 'Erap' Estrada, that made a bottlenecks in the country’s main cargo port in Manila.

As for domestic consumption, StanChart cited strong motor vehicle sales, which increased about 22-percent in the first four months of 2014. StanChart also cited affirmative revenues amongst the country’s giant companies.

"A measure of economic performance, GDP is the amount of final goods and services produced in the Philippines."

StanChart stated that the Standard and Poor’s recent upgrade of the Philippines’ credit rating would also skyrockets business confidence some time soon, opening its gate to similar upgrades by other major credit rating agencies.

All of these positive factors, along with the steady taper of the United States' Federal Reserve, should lead to the appreciation of the Philippine peso, StanChart said, adding that it now foreseen the exchange rate averaging P43:$1 by the end of 2014 and will eventually slip to P42.75 by mid-2015.

The bank forecast inflation averaging 4.4-percent by this year, which is on the mid-upper of the Bangko Sentral ng Pilipinas’ (BSP) full-year target of 3% to 5%. - Centrio Times

 

Continue reading