Forex gains help BSP turn losses into profits
01/12/2009 | 06:47 PM
MANILA, Philippines - The Philippine central bank turned losses into profit, thanks to foreign exchange gains incurred during the first three quarters of last year.
The Bangko Sentral ng Pilipinas (BSP) said earnings reached P3.68 billion from January to September last year after posting P28.9 billion in losses during the same period in 2007, the agency said citing its preliminary and unaudited data.
As of October, the BSP—the only agency authorized to issue and print Philippine currency—earned P11.3 billion, a whopping 302 percent increase from its P2.8 billion income during the same period last year.
The central bank’s liabilities also expanded as it opened high-interest accounts used to siphon off excess cash in the system to fight inflation.
The BSP’s liabilities climbed by more than 25 percent to P2.1 trillion as it paid a premium on special deposit accounts (SDA), which was established in May 2007, as a special monetary tool to curb excess liquidity.
Since it paid more money to SDA investors, the agency also weakened its ability to remit income to national coffers.
“The expansion in liabilities was also traceable to the increases in almost all accounts in the balance sheet, notably the P51.6 billion expansion in currency issued and the P41.8 billion rise in foreign loans payable during the period," Tetangco said.
Revenues for the period reached P24.2 billion,15 percent lower than year ago revenues of P28.4 billion.
Meanwhile, total interest earnings rose by P58 million to P17.07 billion due to “domestic securities and loans and advances," BSP Governor Amando M. Tetangco Jr. said. - GMANews.TV
The Bangko Sentral ng Pilipinas (BSP) said earnings reached P3.68 billion from January to September last year after posting P28.9 billion in losses during the same period in 2007, the agency said citing its preliminary and unaudited data.
As of October, the BSP—the only agency authorized to issue and print Philippine currency—earned P11.3 billion, a whopping 302 percent increase from its P2.8 billion income during the same period last year.
The central bank’s liabilities also expanded as it opened high-interest accounts used to siphon off excess cash in the system to fight inflation.
The BSP’s liabilities climbed by more than 25 percent to P2.1 trillion as it paid a premium on special deposit accounts (SDA), which was established in May 2007, as a special monetary tool to curb excess liquidity.
Since it paid more money to SDA investors, the agency also weakened its ability to remit income to national coffers.
“The expansion in liabilities was also traceable to the increases in almost all accounts in the balance sheet, notably the P51.6 billion expansion in currency issued and the P41.8 billion rise in foreign loans payable during the period," Tetangco said.
Revenues for the period reached P24.2 billion,15 percent lower than year ago revenues of P28.4 billion.
Meanwhile, total interest earnings rose by P58 million to P17.07 billion due to “domestic securities and loans and advances," BSP Governor Amando M. Tetangco Jr. said. - GMANews.TV
