PNT Foreign Exchange $ 1.00 Cdn = P40.77 Php
12 BUSINESS NEWS PHILIPPINE ASIAN NEWS TODAY October 16 - 31 , 2017
PESO AT 51.77 ; Depreciation still moderate , gradual
The Philippine peso yesterday continued to depreciate , closing at P51.77 , as the dollar firmed on the perception that an “ anti-inflation hawk ” will be appointed as the next Federal reserve governor .
The peso ’ s closing level yesterday was the lowest since July 25 , 2006 when it closed at P51.87 to the dollar . It was also 0.33 lower than the previous day ’ s close of P51.44 .
Traded volume reached $ 773 million , more than $ 200 million more than the previous day ’ s total of $ 551.2 million .
Most emerging Asian currencies also weakened yesterday as the dollar index , which tracks the greenback against six major currencies , rose as much as 0.25 percent to 94.008 .
But Nestor Espenilla , Bangko Sentral ng Pilipinas Governor , said he is comfortable with the current level as the depreciation is still “ moderate and gradual .”
“ The exchange rate is a policy instrument of the BSP not a target . So it is allowed to move flexibly in line with global external and domestic shocks ,” Espenilla said .
Espenilla said “ fears and uncertainties in the world are reflected in the day to day volatility of the exchange rate .”
“ We allow it to reflect that because that is the reality the economy operates under . The BSP does do tactical intervention to keep the volatility not excessive … Of late the peso has been depreciating . I ’ d like to think moderately and gradually ,” Espenilla said .
Espenilla said allowing the peso to depreciate “ is part of the adjustment mechanism .”
“ Examine the alternative if we have to react to exchanges . So what are the tools of the BSP ? You want us to jack up interest rate ? That has a bigger economy-wide impact . So our interest rates are focused on inflation . So if the foreign exchange is already beginning to influence inflation in a way that makes us breach our target , then that may warrant a response from the BSP . But I said we have other tools . We ’ ve got a big ( foreign exchange ) reserves that we use for tactical intervention ,” Espenilla said .
As the country ’ s inflation environment is expected to remain manageable over the policy horizon , the policymaking Monetary Board last month kept steady the key rates of the BSP at 3 percent . The corresponding interest rates on the overnight lending and deposit facilities were also kept steady . The reserve requirement ratios were likewise left unchanged .
The rates have been maintained since September 2014 .
Espenilla said that in the policy approach of the BSP , they have multiple tools to deal with multiple objectives .
“ For the primary objective of the BSP of keeping inflation low and stable , we have our inflation targeting framework and that framework is the one that drives the calibration of our policy interest rates . Our policy interest rates primarily depend on our evaluation of the inflation path not yesterday but going forward that now extends two years ahead 2019 ,” Espenilla said .
Joey Cuyegkeng , ING Bank Manila ’ s senior economist , said aside from external developments specifically market fear of a more hawkish US central bank in 2018 , yesterday ’ s recent drop in the value comes from market perception that there will be no monetary policy support anytime soon .
Also affecting the decline are concerns that structural inflows would not cover the wider trade deficit this year and market perception of economic policymakers tolerance of a weaker peso .( Jimmy Calapati , Malaya )
Northern PH to see tourism boom
PNT Foreign Exchange $ 1.00 Cdn = P40.77 Php
$ 1.00 US = P 51.72
€ 1.00 EUR = P 60.81 ₤ 1.00 GBP = P 67.90 D1.00 BHD = P 137.06 R1.00 SAR = P 13.79 ¥ 1.00 JPY = P 0.45
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All the four regions of Northern Philippines comprising the Cordilleras , Ilocos and Pangasinan , Cagayan Valley and Central Luzon are bracing for a tourism boom arising from the government ’ s ongoing “ Build , Build , Build ” infrastructure program .
Part of this massive infrastructure buildup covers the country ’ s airports , which the four regions host the most number of , and stands to benefit the most .
NorthPhil hosts the international airports in Clark , Subic and Laoag ; principal domestic airports in Baguio City in the Cordilleras , Basco in Batanes , and Tuguegarao in Cagayan ; and the community airports in Bagabag in Nueva Vizcaya , Baler in Aurora , Cauayan and Palanan in Isabela , Iba in Zambales ,
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Itbayat Island in Batanes , Lingayen and Rosales in Pangasinan , Plaridel in Bulacan , Poro Point in La Union , and Vigan in Ilocos Sur ,
Most of those provinces form part of two super-regions – the North Luzon Agribusiness Quadrangle and the Metro Luzon Urban Beltway , both also accessible by sea .
All of NorthPhil can be reached by land from any of its three international airports , particularly Clark with its ever-increasing number of international and domestic flights and a passenger volume expected to reach 1.5 million by end-2017 .
Unlike the international airport in Manila , Clark has room to expand .
From Clark , the rest of northern Luzon can be reached by land through
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three major road arteries , the Subic-Clark-Tarlac Expressway ( SCTEX ), North Luzon Expressway ( NLEX ), nd the Tarlac-Pangasinan-La Union Expressway ( TPLEX ).
TPLEX is due for c o m p l e t i o n early next year – thus making t o u r i s m traffic more c o n v e n i e n t than any other region of NorthPhil ’ s m a g n i t u d e .
T h e Department of Tourism ’ s offices in the C o r d i l l e r a Administrative Region , Region 1 ( Ilocandia ), Region 2
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( Cagayan Valley ) and Region 3 ( Central Luzon ) have partnered with the private sector such as the Association of Tourism Officers of Central Luzon and Cebu Pacific Air in |
promoting the region through the NorthPhil Tourism and Travel Expo to be held at the SM City Clark , Pampanga on November 17 to 19 .( Malaya ) |
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