December 23, 2020 | 6:21 pm Font Size
PHILSTAR/MIGUEL DE GUZMAN
THE PESO appreciated against the greenback on Wednesday on the back of remittance flows for the holiday season.
The local unit closed at P48.07 per dollar, gaining 2.5 centavos from its P48.095 finish on Tuesday, data from the Bankers Association of the Philippines showed.
It also appreciated by 1.5 centavos against its P48.085 per dollar finish on Friday. Financial markets are closed on Dec. 24 and 25 for the Christmas holidays.
The peso started Wednesday’s session at P48.075 versus the dollar. Its weakest showing was at P48.085 while its intraday best was at P48.045 against the greenback.
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BW FILE PHOTO
THE government’s budget deficit continued to widen in November due to higher spending, while tax collections dropped.
The fiscal gap worsened 2.5 times to P108.2 billion from a year earlier, according to data released by the Treasury bureau on Wednesday.
This brought the 11-month budget gap to P713.8 billion, more than nine times the amount last year.
A government experiences a deficit when it spends more money than it takes in from taxes and other revenues. This gap between income and spending forces the state to borrow, increasing the national debt.
An increase in the budget gap can boost a sluggish economy by giving more money to people who can then buy and invest more. But long-term deficits can be bad for economic growth and stability.
December 23, 2020 | 6:23 pm Font Size
PHILSTAR
YIELDS ON term deposits offered by the Bangko Sentral ng Pilipinas (BSP) on Wednesday were mixed following signals that the regulator could maintain a low interest rate environment and on window-dressing ahead of the year’s close.
Demand for the central bank’s term deposit facility (TDF) amounted to P531.223 billion on Wednesday, surpassing the P490 billion on the auction block but falling below the P570.33 billion in bids logged the previous week.
Broken down, bids for the six-day term deposits reached P159.937 billion, lower than the P170-billion offering as well as the P235.871 billion in tenders a week ago.
December 22, 2020 | 9:00 pm Font Size
BW FILE PHOTO
THE PESO inched down against the greenback on Tuesday amid risk-off sentiment due to the new coronavirus strain seen in the United Kingdom.
The local unit finished trading at P48.095 per dollar, shedding a centavo from its Monday close of P48.085.
The peso opened Tuesday’s session P48.10 a dollar. Its weakest showing was at P48.125 while its intraday best was at P48.07 against the greenback.
Dollars exchanged went up to $457.4 million on Tuesday from $399.9 million on Monday.
Market players became cautious after the recent findings on the new virus strain in the UK, causing a slight depreciation in the local unit, a trader said.
December 23, 2020 | 12:34 am Font Size
Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno PHILIPPINE STAR/GEREMY PINTOLO
THE CENTRAL BANK is committed to keeping interest rates low until the end of 2022 to provide support for the economy as it recovers from the pandemic, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said on Tuesday.
In an interview with Bloomberg Television, Mr. Diokno said the central bank continues to have “monetary space” available, even after implementing a cumulative 200-basis point (bp) reduction in policy rates this year.
“We made the policy decision that we will keep rates at this level until the economy has fully recovered, until the economy has recovered to its previous level of maybe 6.5 to 7.5% [growth], and unemployment is down to 5% range,” Mr. Diokno said