MANILA, Philippines - The Philippines’ foreign exchange reserves are expected to reach record levels next year, buttressed by the surge in funds sent home by Filipinos working overseas.
However, the increase may be unable to further strengthen the country’s financial standing once these funds are used to pay for imported oil and raw materials, prices of which continue to rise.
Projected to reach $40 billion by 2009—approximately $3 billion more than the amount expected this year—the country’s dollar reserves may be unable to improve the Philippines’ balance of payments (BOP).
After paying for its imports, Manila ended up with a surplus of $8.6 billion last year. This year, monetary officials see a BOP surplus of $2.5 billion, roughly the same amount expected next year. [Read more]
No comments:
Post a Comment