|
STABILIZING the peso continues to be costly for the
Bangko Sentral ng Pilipinas (BSP).
It
reported on Monday a net loss of P6.71 billion in the
first seven months.
The
loss, however, was more than six times lower than year
ago losses totaling P39.20 billion.
BSP data
show that central bank revenues rose 13.2 percent for
the period to P50.50 billion, driven largely by P41.1
billion in interest income from domestic and foreign
investment activities. Interest income was 19-percent
higher than P34.52 billion in the same period last year.
Miscellaneous income of P9.51 billion—lower by 6.6
percent from a year earlier—also contributed to the rise
in central bank’s revenue.
Its
expenses for first seven months rose by 38 percent to
P46.97 billion, pushed by a higher interest expense of
P39.77 billion.
Its
interest expense was 45.5 percent higher from the year
ago level only P27.34 billion.
There
were also other expenses of P7.19 billion that
contributed to overall expenses this year, which was
7.3- percent higher than P6.7 billion year ago earlier.
BSP is
actually doing a good job limiting this year’s losses to
only P6.71 billion given its net loss in the same period
last year totaled P39.20 billion.
Tetangco
earlier told reporters the central bank does not target
a specific exchange rate but it endeavors to smoothen or
moderate sudden movements by selling or buying dollars
at strategic points.
The
exchange rate averaged P44.956 per dollar in July, lower
by an average of 67.5 centavos from June, BSP data show.
It has
averaged higher to P44.877 per dollar in August and
P46.623 in the first 15 days of September.
A
treasury official from a foreign bank said by telephone
the financial woes of some of the largest investment
banks and securities brokers in the United States like
Lehman Brothers, Merrill Lynch and the insurance giant
American International Group drove the peso lower on
Monday.
“These
problems are all bad news for the peso. This is all risk
aversion,” the said bank official who requested
anonymity. |
