by: Sarah Joson
Monday, May 11, 2015 |
Even with the looming difference in monetary policies overseas, the International Monetary Fund (IMF) predicts that the Philippine peso will maintain its stable position.
Shanaka Jayanath Peiris, IMF’s resident representative, said the Philippines will be in a better position compared to other countries as it currently possesses a strong account surplus and ample foreign reserves.
According to data from Bangko Sentral ng Pilipinas, in the past four months, the peso was seen averaging at 44.421:$1, higher than the 44.395:$1 average posted over the same period last year. The institution also revealed that the local unit is stirred by the uncertainty in international oil prices, as well as the pending rate increase of the US Federal Reserve.
The Philippines’ current account surplus reached $12.6 billion last year, from $11.4 billion in 2013. The country’s current account reflects its health and is composed of its exports, imports, earnings from the business process outsourcing and tourism industry, and remittances from Filipinos working abroad.
BSP data also showed that gross international reserves reached $80.799 billion in April, which is equivalent to 10.6 months’ worth of the country’s imports of goods and payments of services and income.
IMF’s recently released Regional Economic Outlook for Asia and the Pacific indicated that the various monetary policies across developed countries are driving the rate changes in the region.
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