Connect with us

Hi, what are you looking for?

Economy

PHL net external liability down as of March

THE COUNTRY’S net external liability position narrowed at end-March as the government paid its maturing bonds and as its investments in equities declined in value due to market volatility in the period amid a rise in coronavirus disease 2019 (COVID-19) cases.

The country’s international investment position (IIP) stood at net external liability of $15.3 billion as of March, down by 24.1% from the $20.2 billion logged at end-December 2020, based on preliminary data from the central Bangko Sentral ng Pilipinas (BSP). On the other hand, the country’s net external liability rose by 10.9% as of end-March from $13.8 billion a year earlier.

The IIP takes into account the country’s financial claims and liabilities.

External financial liabilities slipped 3.3% to $245.8 billion as of end-March from $254 billion as of end-December 2020. This outpaced the 1.49% decline in residents’ foreign financial assets to $230.4 billion from $233.9 billion.

The downward revaluation of short-term foreign portfolio investments and foreign direct investments (FDI) in equity instruments resulted in an external financial liability in the period, the BSP said in a statement.

“This reflected the decline in the Philippine Stock Exchange index towards the end of the first quarter on the back of spike in COVID-19 cases during the period, the subsequent reimposition of containment measures, and concerns that these may impact on economic growth negatively,” the central bank explained.

“The repayments of maturing bond issuances by the national government as well as foreign loans by the banks contributed to the decrease in the external financial liabilities of the country,” it added.

Short-term foreign investments or hot money yielded a net outflow of $483 million in the first three months of the year, albeit smaller by 65.5% from the $1.4 billion net outflow in the same period of 2020.

Meanwhile, FDI inflows that went to equity and investment fund shares slipped 2.1% to $946 million in the first quarter from $967 million a year earlier.

On the other hand, the decline in the stock of the country’s total external financial assets was driven mainly by lower level of gross international reserve assets to $104.5 billion from $110.1 billion as the BSP diversified its foreign currency assets to include non-reserve assets.

The central bank held the largest share of residents’ total external claims, making up $109.4 billion or 47.5% of the total. These assets were mostly in the form of reserve and net placements in debt securities issued externally.

Nearly half (45.6%) or $104.5 billion of these external financial assets were reserves held by the BSP. Meanwhile, residents’ net investments in debt instruments ($36.5 billion), debt securities ($29.9 billion), and equity capital ($28.3 billion) made up 15.8%, 13%, and 12.3% of the total external financial assets, respectively.

Major financial assets such as net placements in foreign currency and deposits (6.7%) and loans extended to non-residents (4.9%) also contributed to the country’s external claims. — LWTN

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

Investing

People living in rural areas are having to travel further to find somewhere to withdraw and deposit cash free of charge, says the City...

Investing

Ministers have ruled out extending the list of workers who are exempt from self-isolation rules and warned that the August 16 date for lifting...

Economy

The House of Representatives will adopt the Senate’s version of the proposed measure taxing Philippine Offshore Gaming Operators (POGO), a key lawmaker said on...

Economy

President Rodrigo R. Duterte on Friday approved the recommendation of his pandemic task force to enforce stricter quarantine rules in Manila, the capital, and...

Economy

Thirty-seven percent of Filipinos are optimistic that their lives will improve over the next 12 months, a non-commissioned survey shows.  Of the 1,200 respondents in Social Weather Stations’...

Economy

Six electricity consumers on Friday filed a complaint with the Ombudsman against Department of Energy (DoE) Secretary Alfonso G. Cusi, alleging that the government official has neglected his duties.  “In his five...

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

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

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...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

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.

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!