Connect with us

Hi, what are you looking for?

Economy

Peso strengthens after BoP, exports data

The peso continued to strengthen against the dollar Friday, buoyed by balance of payments and gross international reserves data.

The peso closed at P48.06 against the dollar, against its P48.115 finish Thursday, according to the Bankers Association of the Philippines.

The peso opened the session at P48.13, its low for th day. The high was P48.055.

Trading volume was $783.4 million, against $575.71 million Thursday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso further strengthened after the central bank on Thursday released October balance of payments (BoP) data.
“The peso was stronger after the highest BoP surplus in nearly a decade which supports new record high GIR (gross international reserves) at $103.8 billion and provides greater support for the peso exchange rate,” he said in a text message.

The Bangko Sentral ng Pilipinas (BSP) reported that the Philippines posted a BoP surplus of $3.44 billion last month, up significantly from the year-earlier $163 million and up 63% compared with September.

This was the biggest monthly surplus since the $3.95 billion recorded in November 2010.

Contributing to the October surplus were the BSP’s income from investments overseas, inflows from its foreign exchange operations and foreign currency deposits of the national government held with the central bank, the central bank said in a statement.

The BSP expects a BoP surplus of $8.1 billion by year’s end which is equivalent to 0.6% of gross domestic product.

The BSP also said GIR rose to $103.8 billion at the end of October from $100.44 billion a month earlier. The bank said the October tally was equivalent to about 10 months worth of imports and services payments which can serve as a buffer against external risk.

A trader said the BoP data increased demand for the peso while pointing to growing exports during the pandemic.

The Philippine Statistics Authority said September exports grew 2.2% to $6.22 billion, the first month of expansion since February. Meanwhile, imports declined 16.5% to $7.92 billion. — Kathryn Kristina T. Jose

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

GROSS BORROWINGS by the National Government had reached P2.75 trillion as of end-October as it continued to raise money for its pandemic response, preliminary...

Economy

By Luz Wendy T. Noble, Reporter THE PHILIPPINE Statistics Authority (PSA) said the base year for the consumer price index (CPI) will change to...

Economy

SOME INDIAN COMPANIES, including those from the pharmaceutical industry, are interested in investing in economic zones in the Philippines, according to an India Business...

Economy

By Keren Concepcion G. Valmonte, Reporter HOSPITALITY GROUPS expect a rebound in tourism as coronavirus disease 2019 (COVID-19) vaccination rates continue to improve and...

Economy

BUSINESSWORLD’s Luz Wendy T. Noble was recognized as the Best Reporter of the Year for Banking at the 30th annual awards of the Economic...

Economy

THE Securities and Exchange Commission (SEC) has flagged eight more entities in separate advisories for their unregistered investment solicitation programs. These offerings are PH...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.