June 20, 2018, 6:28 am
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1 Philippine Peso = 0.06897 UAE Dirham
1 Philippine Peso = 2.04526 Albanian Lek
1 Philippine Peso = 0.03404 Neth Antilles Guilder
1 Philippine Peso = 0.52113 Argentine Peso
1 Philippine Peso = 0.02544 Australian Dollar
1 Philippine Peso = 0.03343 Aruba Florin
1 Philippine Peso = 0.03756 Barbados Dollar
1 Philippine Peso = 1.57728 Bangladesh Taka
1 Philippine Peso = 0.03184 Bulgarian Lev
1 Philippine Peso = 0.00709 Bahraini Dinar
1 Philippine Peso = 32.88225 Burundi Franc
1 Philippine Peso = 0.01878 Bermuda Dollar
1 Philippine Peso = 0.02522 Brunei Dollar
1 Philippine Peso = 0.12883 Bolivian Boliviano
1 Philippine Peso = 0.07009 Brazilian Real
1 Philippine Peso = 0.01878 Bahamian Dollar
1 Philippine Peso = 1.277 Bhutan Ngultrum
1 Philippine Peso = 0.19573 Botswana Pula
1 Philippine Peso = 375.96244 Belarus Ruble
1 Philippine Peso = 0.03752 Belize Dollar
1 Philippine Peso = 0.02494 Canadian Dollar
1 Philippine Peso = 0.01868 Swiss Franc
1 Philippine Peso = 12.01146 Chilean Peso
1 Philippine Peso = 0.12169 Chinese Yuan
1 Philippine Peso = 54.86948 Colombian Peso
1 Philippine Peso = 10.59718 Costa Rica Colon
1 Philippine Peso = 0.01878 Cuban Peso
1 Philippine Peso = 1.78854 Cape Verde Escudo
1 Philippine Peso = 0.41869 Czech Koruna
1 Philippine Peso = 3.33333 Djibouti Franc
1 Philippine Peso = 0.12088 Danish Krone
1 Philippine Peso = 0.93052 Dominican Peso
1 Philippine Peso = 2.20053 Algerian Dinar
1 Philippine Peso = 0.25367 Estonian Kroon
1 Philippine Peso = 0.33502 Egyptian Pound
1 Philippine Peso = 0.51117 Ethiopian Birr
1 Philippine Peso = 0.01621 Euro
1 Philippine Peso = 0.03897 Fiji Dollar
1 Philippine Peso = 0.01426 Falkland Islands Pound
1 Philippine Peso = 0.01425 British Pound
1 Philippine Peso = 0.08833 Ghanaian Cedi
1 Philippine Peso = 0.87962 Gambian Dalasi
1 Philippine Peso = 169.05164 Guinea Franc
1 Philippine Peso = 0.14052 Guatemala Quetzal
1 Philippine Peso = 3.88526 Guyana Dollar
1 Philippine Peso = 0.14739 Hong Kong Dollar
1 Philippine Peso = 0.44866 Honduras Lempira
1 Philippine Peso = 0.1197 Croatian Kuna
1 Philippine Peso = 1.23812 Haiti Gourde
1 Philippine Peso = 5.22103 Hungarian Forint
1 Philippine Peso = 261.46479 Indonesian Rupiah
1 Philippine Peso = 0.06819 Israeli Shekel
1 Philippine Peso = 1.27817 Indian Rupee
1 Philippine Peso = 22.23474 Iraqi Dinar
1 Philippine Peso = 796.99531 Iran Rial
1 Philippine Peso = 2.05333 Iceland Krona
1 Philippine Peso = 2.4507 Jamaican Dollar
1 Philippine Peso = 0.01331 Jordanian Dinar
1 Philippine Peso = 2.06607 Japanese Yen
1 Philippine Peso = 1.89577 Kenyan Shilling
1 Philippine Peso = 1.28255 Kyrgyzstan Som
1 Philippine Peso = 75.84601 Cambodia Riel
1 Philippine Peso = 7.92488 Comoros Franc
1 Philippine Peso = 16.90141 North Korean Won
1 Philippine Peso = 20.8492 Korean Won
1 Philippine Peso = 0.00568 Kuwaiti Dinar
1 Philippine Peso = 0.0154 Cayman Islands Dollar
1 Philippine Peso = 6.40488 Kazakhstan Tenge
1 Philippine Peso = 157.33333 Lao Kip
1 Philippine Peso = 28.26291 Lebanese Pound
1 Philippine Peso = 3.00282 Sri Lanka Rupee
1 Philippine Peso = 2.66254 Liberian Dollar
1 Philippine Peso = 0.2584 Lesotho Loti
1 Philippine Peso = 0.05725 Lithuanian Lita
1 Philippine Peso = 0.01165 Latvian Lat
1 Philippine Peso = 0.02546 Libyan Dinar
1 Philippine Peso = 0.17921 Moroccan Dirham
1 Philippine Peso = 0.31576 Moldovan Leu
1 Philippine Peso = 0.99324 Macedonian Denar
1 Philippine Peso = 25.69014 Myanmar Kyat
1 Philippine Peso = 45.33333 Mongolian Tugrik
1 Philippine Peso = 0.15181 Macau Pataca
1 Philippine Peso = 6.66667 Mauritania Ougulya
1 Philippine Peso = 0.65765 Mauritius Rupee
1 Philippine Peso = 0.29239 Maldives Rufiyaa
1 Philippine Peso = 13.39812 Malawi Kwacha
1 Philippine Peso = 0.3853 Mexican Peso
1 Philippine Peso = 0.07515 Malaysian Ringgit
1 Philippine Peso = 0.25797 Namibian Dollar
1 Philippine Peso = 6.74178 Nigerian Naira
1 Philippine Peso = 0.59151 Nicaragua Cordoba
1 Philippine Peso = 0.15379 Norwegian Krone
1 Philippine Peso = 2.0385 Nepalese Rupee
1 Philippine Peso = 0.0272 New Zealand Dollar
1 Philippine Peso = 0.00723 Omani Rial
1 Philippine Peso = 0.01878 Panama Balboa
1 Philippine Peso = 0.06164 Peruvian Nuevo Sol
1 Philippine Peso = 0.06142 Papua New Guinea Kina
1 Philippine Peso = 1 Philippine Peso
1 Philippine Peso = 2.28545 Pakistani Rupee
1 Philippine Peso = 0.06993 Polish Zloty
1 Philippine Peso = 106.70047 Paraguayan Guarani
1 Philippine Peso = 0.06835 Qatar Rial
1 Philippine Peso = 0.07565 Romanian New Leu
1 Philippine Peso = 1.1966 Russian Rouble
1 Philippine Peso = 15.95174 Rwanda Franc
1 Philippine Peso = 0.07042 Saudi Arabian Riyal
1 Philippine Peso = 0.14841 Solomon Islands Dollar
1 Philippine Peso = 0.25277 Seychelles Rupee
1 Philippine Peso = 0.33719 Sudanese Pound
1 Philippine Peso = 0.16718 Swedish Krona
1 Philippine Peso = 0.02548 Singapore Dollar
1 Philippine Peso = 0.01426 St Helena Pound
1 Philippine Peso = 0.41701 Slovak Koruna
1 Philippine Peso = 149.29577 Sierra Leone Leone
1 Philippine Peso = 10.57277 Somali Shilling
1 Philippine Peso = 397.4216 Sao Tome Dobra
1 Philippine Peso = 0.16432 El Salvador Colon
1 Philippine Peso = 9.67099 Syrian Pound
1 Philippine Peso = 0.25817 Swaziland Lilageni
1 Philippine Peso = 0.61446 Thai Baht
1 Philippine Peso = 0.04845 Tunisian Dinar
1 Philippine Peso = 0.04326 Tongan paʻanga
1 Philippine Peso = 0.08905 Turkish Lira
1 Philippine Peso = 0.12487 Trinidad Tobago Dollar
1 Philippine Peso = 0.56648 Taiwan Dollar
1 Philippine Peso = 42.59155 Tanzanian Shilling
1 Philippine Peso = 0.49596 Ukraine Hryvnia
1 Philippine Peso = 72.33803 Ugandan Shilling
1 Philippine Peso = 0.01878 United States Dollar
1 Philippine Peso = 0.59211 Uruguayan New Peso
1 Philippine Peso = 147.69953 Uzbekistan Sum
1 Philippine Peso = 1498.59155 Venezuelan Bolivar
1 Philippine Peso = 429.12676 Vietnam Dong
1 Philippine Peso = 2.02911 Vanuatu Vatu
1 Philippine Peso = 0.04869 Samoa Tala
1 Philippine Peso = 10.62592 CFA Franc (BEAC)
1 Philippine Peso = 0.0507 East Caribbean Dollar
1 Philippine Peso = 10.62592 CFA Franc (BCEAO)
1 Philippine Peso = 1.92432 Pacific Franc
1 Philippine Peso = 4.69202 Yemen Riyal
1 Philippine Peso = 0.25823 South African Rand
1 Philippine Peso = 97.4554 Zambian Kwacha
1 Philippine Peso = 6.79624 Zimbabwe dollar

MAY ADD PRESSURE ON PESO: BSP cuts banks’ reserve ratio

The Bangko Sentral ng Pilipinas said it was reducing banks’ reserve requirement ratio (RRR) by 1 percentage point beginning March 2, a move that could pump between “P80 to P100 billion” into the economy but put fresh pressure on the peso, which has sunk to near 12-year lows.

Reserve requirement is the percentage of deposits in banks that must be kept at the BSP. A lower reserve requirement increases the amount of money in circulation.

The cut will bring the amount of reserves banks need to park with the BSP to 19 percent.

The BSP had previously flagged a plan to eventually cut the reserve ratio (RRR) from 20 percent, which was among the highest in the region, as it reduces its reliance on the tool to manage liquidity in the financial system.

It has maintained such a move should not be mistaken as a change in monetary policy in one of the fastest-growing economies in Asia.

But the timing of the RRR announcement came as a surprise, coming on the eve of a public holiday and after wild swings in global financial markets. And, it was not made as usual at a scheduled policy meeting.

Nestor Espenilla, BSP Governor, has said the planned RRR cuts are part of the bank’s financial market reforms, following its shift to an interest rate corridor system in June 2016.

“In deciding to reduce the reserve requirement ratios, the Monetary Board reaffirms the (Philippine central bank’s) commitment to gradually lessen its reliance on reserve requirements for managing liquidity in the financial system,” it said in a statement.

“RRR is one of the traditional monetary policy instruments available to BSP.  We have heavily relied on it for a long time to run effective monetary policy. This is no longer the case for the Philippines.  Therefore, continued heavy reliance on RRR has become highly burdensome and distorts the financial system,” Espenilla earlier said.

Espenilla explained that with the shift to the interest corridor system in 2016, BSP can now effectively manage liquidity in a more market friendly manner. 

“This is the logic behind the plan to gradually phase down RRR to single digit levels comparable to those prevailing in Asean countries of more or less similar development.  This means that forthcoming reductions in RRR should not be mistaken as a change in monetary policy stance.  Rather, it should be viewed as part of ambitious financial market reforms that BSP is currently implementing.  High RRR policy belongs to the same regime as extensive quantitative FX controls that we are also easing.  This is more compatible with our more sophisticated financial system and much stronger economy today,” Espenilla explained.

Joey Cuyegkeng, ING Bank Manila senior economist, the cut is “consistent with our dovish BSP bias.”

“The move would likely be seen also as greater tolerance of economic managers to a weaker peso. The cut does not necessarily mean a P90 billion infusion to the system since part of this would be siphoned off through higher Term Deposit Facility (TDF) weekly offerings,” Cuyegkeng said.

He said the cut has to be considered together with the increase in the TDF of BSP. 

The total amount every week for the TDF has been increased to P110 billion starting this week from P80 billion last week and from P60 billion early this month. A total of P50 billion was added to the TDF. 

BSP expects that the P90 billion inflow into the monetary system from a 1 percentage point cut in bank reserves would be partially siphoned off with the additional P50 billion in TDF offerings.

“The move would still be viewed as BSP providing additional stimulus to the economy through higher lending and/or to support government’s financing needs. Demand push inflation could result also.  The likely backlash could be seen with the currency as market would still view this as a monetary easing even though the easing is made more modest by the higher TDF offerings,” Cuyegkeng explained.

Emilio Neri Jr, chief economist at Bank of the Philippine Islands, said there was “some degree of surprise” at the central bank’s move, since past adjustments in RRR were announced in tandem with monetary policy decisions.

“I think some are already prepared because the governor has been very transparent that he has plans to reduce that, being a very inefficient tool for policy,” Neri said.

Without the term deposit facilities to offset the increased liquidity from the RRR cut, the peso should weaken, said Neri.

“But we doubt that very much. Aside from a rate hike expected on March 22, we will probably see bigger auctions for the TDFs,” he said.

The Bankers Association of the Philippines (BAP) welcomes the decision by the BSP in its effort to help sustain the country’s growth momentum as the government embarks on a massive infrastructure spending.

The reserve adjustment means that borrowers will have access to more sources of funds and more efficient cost of borrowing that is expected to propel more economic activity in the country. 

“In a few weeks, we expect that BAP member banks will be able to extend additional credit to consumers and enterprises that require adequate funds for their personal and business needs,” BAP managing director Benjamin Castillo said. 

“We are confident to this move of the Monetary Board for the gradual reduction in the reserve ratio which clearly demonstrates a strong regulatory framework and supports the BSP’s ability to further manage liquidity while policy rates are within its framework to continuously promote economic growth,” Castillo added.

The move also came as a Reuters poll showed investors have been adding to their bearish bets on the peso, which has been the worst performing currency in Asia this year, shedding 2.8 percent against the US dollar.

The one-percentage point reduction will inject more than P80 billion ($1.53 billion) into the financial system, but less than P100 billion, Zeno Abenoja, central bank director, told reporters.

Such an infusion of funds would risk adding to inflationary pressures in the booming economy. 

Some market watchers fear it is already at risk of overheating and that interest rates will have to be hiked aggressively as a result.

The central bank held rates steady in its latest policy review last week, arguing that a recent spike in inflation will moderate, but a slim majority of economists are now penciling in a hike as early as March.

However, the BSP said on Thursday that it can mitigate the impact from the additional liquidity through its auction-based monetary operations.

The central bank has been offering term deposit facilities to help mop up liquidity and this week offered a new 14-day tenor, in addition to longer term instruments. – Jimmy C. Calapati, Reuters 
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