The Bank of the Philippine Islands (BPI) recently projected that the country’s currency will remain resilient at P42 to US$1, averaging at P42.777 during the first few days of March and has recovered from the lowest valuation at P43.619 last January.
According to BPI’s Asset Management Group Head Tere Javier, increasing investments on the emerging markets in the Philippines, remittances from eight million Filipinos who are working abroad, and earnings from the business process outsourcing (BPO) industry are the factors that keep the peso strong. In fact, the projection of P42 to P42.30 per US dollar is reinforced by the BPO sector’s continuous growth and five percent increase in OFW remittances.
In the four-point investment theme of BPI for 2012, emerging markets are expected to fuel global growth and remain fund generators. The economy will be able to overcome challenges, though there will still be market volatilities as a result of geopolitical issues.
Javier said remittances for this year will be $21.1 billion. This is five percent higher than figures posted in 2011. On the other hand, earnings from BPO will increase by 19 percent reaching $13 billion. Healthcare, finance and accounting, human resources, animation, and creative services are seen as some of the growth areas in the BPO industry.