Philippines to liberalize forex regulations

Published on The Manila Bulletin Newspaper Online (http://www.mb.com.ph/)
Home > Philippines to liberalize forex regulations

MANILA, Philippines (Xinhua) - The Philippine central bank has liberalized its rules on foreign exchange transactions in the country, partly to address the sharp rise in the local currency.

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) said the proposed amendments--which will take effect 15 days after its publication in newspapers--are expected to encourage greater foreign exchange outflows at a time when the domestic currency has been appreciating against the U.S. dollar.

Source URL: http://www.mb.com.ph/articles/284759/philippines-liberalize-forex-regulations

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Comment:

When the Philippines floated bonds(peace,government,et al)during GMA time they were all based on the local currency in exchange to the dollar, which at that time was around 50 to $1. Presently, the market forces dictate 43-44 to $1, effectively we will be losing at least 10% on the local currency, plus the interest payment. Dapat interest lang.

The situation is, the remittances are coming in and there is low revenue collection. The Central Bank has to print more pesos and ease the dollar outflow to gain the exchange rate at the time of the bond float.

Without the above actions,the debt servicing due will wipe out the local currency, lower the dollar exchange-bad for the OFWs, retail industry(X'mas.) Overall, they should have quantified which is the softer landing, just in case the economy doesn't take off.

In retrospect, everything is the product result of GMA administration corruption.

Just my take,pag lalong gumulo and ambiguous, that's economics.