October 16 - 31 , 2016 PHILIPPINE ASIAN NEWS TODAY BUSINESS NEWS B5
Yuan now part of BSP international reserves
PNT Foreign Exchange
$ 1.00 Cdn = P36.23 Php $ 1.00 US = P 48.47 € 1.00 EUR = P 52.74 ₤ 1.00 GBP = P 59.35
D1.00 BHD = P 128.28 R1.00 SAR = P 12.92 ¥ 1.00 JPY = P 0.46
The Chinese renminbi is now part of the central bank ’ s gross international reserves , underscoring China ’ s growing role in the global economy .
The Bangko Sentral ng Pilipinas said the RMB ’ s inclusion in the GIR started October 13 , following its addition to the IMF ’ s basket of currency early this month .
In its decision to include the RMB in the GIR , BSP Governor Amando Tetangco said the policy makers took into consideration the “ rising economic and financial importance abroad of China that is expected to increase the use of the said currency .”
The RMB , also known as yuan , was the firth most active currency used for global payments by market value in July 2016 , with a share of 1.9 percent , up from 1.7 percent the previous month , according to global transaction service provider SWIFT , which tracks the most actively used currencies globally .
The yuan ’ s inclusion in the GIR will ensure that the country has enough supply of RMBs to meet demand from local businessmen , the BSP said .
The GIR is currently dominated by the dollar , and includes the IMF ’ s special drawing rights , as well as gold . It reached a record $ 85.9 billion last month .
The country ’ s trade deals with China is rising in the last five years . Government data showed exports to China rose nearly 9 percent to $ 6.2 billion last year from $ 5.7 billion in 2010 . Imports , meanwhile , more than doubled to $ 11.5 billion during the same period .( M . Caraballo , MT )
Business ownership rules eased
We will not abandon Japan – Duterte
The Philippine government has pledged to ease constitutional restrictions on foreign ownership of businesses to allow more investments and generate employment in the country .
However , President Duterte ’ s economic team refused to relax rules on foreign ownership of lands as they tried to attract Japanese investors to the country during a forum in Tokyo Wednesday morning .
“ In the next year , we will be opening the areas for investments that have been administratively limited and this will be done in May of 2017 ,” Finance Secretary Carlos Dominguez said at the Philippine Economic Forum at the Prince Park Hotel here .
“ For the near future , the President has called for a constitutional convention to open up those areas of our economy that are limited by our Constitution , with the exception of land ownership ,” he added .
Prior to Dominguez ’ s remarks , the Japanese business community called for the relaxation of strict constitutional restrictions that curb investments to the Philippines .
“ We expect a relaxation on foreign investments currently stipulated by the Constitution ,” Teruo Asada , co-chairman of the Japan-Philippines Economic Cooperation Committee , said in his speech .
Asada , chairman of trading house Marubeni Corporation , admitted that such constitutional constraints have been a major obstacle to increasing Japanese investments in the Philippines .
He said they believe in the “ strong leadership and executive power ” of President Duterte to carry out much needed Charter reforms .
Pending the proposed Charter amendments , Asada assured Japan remains a steady partner of the Philippines in infrastructure development , citing the 240 billion yen railway project between Malolos and Tutuban , among other projects .
Duterte vowed to continue to improve the business climate in the country , from cutting red tape to keeping peace and order , to attract more investors and businesses to set up shop .
He said he would implement policies that would ensure stability in the macro-economic policies , increase competitiveness , improve ease of doing business , increase spending in crucial infrastructure and invest further in the human capital development .
“ We are confident that more Japanese businesses will follow and go to the Philippines ,” Duterte said .
At present , the 1987 Constitution limits foreign ownership of companies in the Philippines to 40 percent , restricting flow of foreign investments and promoting local businesses from foreign competition .
The President has initially endorsed moves to amend certain economic provisions of the Constitution via constitutional convention but later changed his mind and preferred the cheaper mode constituent assembly .
In the same business forum , the President ’ s economic managers took turns in trying to convince Japanese businessmen to invest in the Philippines , citing stable economic conditions and skilled Filipino workforce .
First on the podium was Dominguez who assured the businessmen that the Duterte administration has a “ pro-business policy ” to ensure sustained growth .
He said the economy remains “ vibrant ” and there is “ a lot of headroom for expansion .”
Both the Philippines and Japan are locked in territorial disputes with China in the South China Sea and the East China Asia , respectively .( Genalyn D . Kabiling , mb )
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