Latest news with #Ricafort
GMA Network
19-06-2025
- Business
- GMA Network
Peso weakens to 12-week low of P57.45:$1
The Philippine peso weakened for the eighth straight trading day on Thursday to mark its worst showing in 12 weeks, as the market factored in geopolitical tensions between Israel and Iran and the current levels of global crude prices. The local currency closed at P57.45:$1, 47 centavos weaker than Wednesday's finish of P56.98:$1. This is the weakest close of the peso since March 26, 2025 when it finished at P57.69:$1. Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort attributed Thursday's depreciation to the possible escalation of the Israel and Iran tensions to potentially involve the United States. US President Donald Trump has declined to say if he had made any decision on whether to join Israel's campaign, saying he may or may not do it, adding that 'nobody knows what I'm going to do.' 'Some risk aversion or flight-to-quality recently due to the continued geopolitical risks in the Middle East, the conflict and retaliatory attacks between Israel and Iran since Friday,' Ricafort said. He also noted the correction of the US dollar against major global currencies to a new one-week high from recent three-year lows, and the global crude oil prices that have hit the highest level since January this year. Ricafort said the peso is expected to trade at P57.35 to P57.55 against the dollar on Friday, June 20, 2025, with the major six-month resistance at P57.55:$1 levels. For its part, the Bangko Sentral ng Pilipinas (BSP) said it is developing a playbook for intervention, but it would take some time for the continuous depreciation of the peso to impact inflation and prompt it to intervene. — RSJ, GMA Integrated News
GMA Network
03-06-2025
- Business
- GMA Network
PH debt rises to new record P16.75 trillion as of end-April 2025
The Philippines' sovereign debt has increased to a fresh record-high as of end-April 2025 as the government continued its fundraising efforts to support budgetary requirements, data released by the Bureau of the Treasury (BTr) showed Tuesday. The national government's outstanding debt rose to P16.752 trillion, 0.41% higher than the P16.68-trillion debt stock recorded as of end-March. Despite the uptick, the Treasury said the government "continues to follow a disciplined debt strategy, ensuring that borrowings support productive investments while keeping fiscal sustainability." In an emailed commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the increasing debt pile was consistent with the continued budget deficit in recent months, thereby fundamentally increasing the need for the national government to borrow more to finance the budget deficit. Nevertheless, the BTr said the state's "fiscal deficit has also been steadily narrowing and is on track to drop to about 3.8% by 2028." "With the economy continuing to grow faster compared to its obligations, the country remains firmly on track to reduce the debt-to-GDP ratio to below 60% by the end of the President's term," the Treasury added. The government's domestic debt amounted to P11.59 trillion during the period, up 1.85% month-on-month due to "the strong demand for government securities, including P300 billion in benchmark bonds." Ricafort also cited the P300-billion 10-year Treasury notes issued in the latter part of April 2025, which was meant to fund the fiscal deficit. The Treasury said the issuance of P300-billion notes "reflects the investors' sustained confidence in the government's fiscal program." "With economic fundamentals remaining sound, the country continues to enjoy strong market access at reasonable rates," it said. "The local currency's appreciation also reduced the peso value of dollar-denominated domestic securities by P3.85 billion," it added. External debt, meanwhile, declined by 2.68% to P5.16 trillion by end-April, "primarily due to the P124.74 billion decrease in the peso value of external debt owing to peso appreciation, combined with net repayments of P58.28 billion." As of end-April 2025, the Treasury said domestic debt continued to account for the majority of the total debt stock at 69.2% while foreign obligations comprised 30.8%. "This is in line with the national government's thrust to reduce exposure to external vulnerabilities," the BTr said. The Treasury, moreover, said the state's debt portfolio "remains resilient" as 91.7% of obligations carry fixed interest rates and 82% are classified as long-term. "This structure helps insulate public finances from abrupt changes in interest rates and the market environment," it said. — VDV, GMA Integrated News
