by: Sarah Joson
Wednesday, February 27, 2013 | Outsourcing News |
According to Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo, higher volumes of remittances, BPO revenues, and tourist receipts were seen last January. These helped both the corporate and government sectors to not only settle foreign loans during the first quarter, but also pay existing expenditures.
Furthermore, BSP’s foreign investments increased 8.8 percent year-on-year, posting a firm $72.13 billion at the end of January. These investments are the country’s assets overseas, which are placed in foreign banks and foreign securities - nearly $68 billion are invested in foreign securities.
JPMorgan Chase and The Northern Trust Co. (TNTC) are assigned by BSP to act as custodian banks for its $10 billion worth of foreign investments or externally managed portfolio (EMP), which was upturned from $4 billion in 2010.
It is JPMorgan and TNTC’s duty as custodians to protect and update BSP's foreign currency-denominated securities. Both also act as security lending agents.
Revenues from the country’s securities lending have reached $85.27 billion last January and are added to the local Forex reserves. The balance of payments, amounting to $2 billion, likewise contributes to these reserves. However, it is projected that gross international reserves (GIR) will reach $86 billion and balance of payments (BOP) will amount to $3 billion surplus.
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