BSP posts P9.67B in forex losses last year

The Bangko Sentral ng Pilipinas (BSP) on Wednesday said it registered P9.67 billion in foreign exchange losses in 2009 as the peso sharply rose against the US dollar. BSP Gov. Amando Tetangco Jr. said that the central bank books foreign exchange losses when the peso strengthens against the US dollar — just like what happened in 2007. In 2007, the central bank recorded its highest foreign exchange losses at P113.71 billion. However, the BSP realized foreign exchange trading gains of P530 million in 2008. Although there were foreign exchange losses in 2009, the BSP posted a net income of P13.16 billion, up by 47 percent from 2008, due to a large increase in miscellaneous income and a decrease in interest expenses, according to the central bank. BSP’s revenues went up to P104.36 billion in 2009 from P95.04 billion in 2008, because of a 68-percent increase in its miscellaneous income or earnings from sources other than interest income. These included fees, rentals, and proceeds from the sale of coins and publications. The BSP said its expenses declined to P81.39 billion in 2009 from P86.28 billion in 2008 after interest expenses fell to P60.99 billion from P71.88 billion. Its assets rose to P2.566 trillion last year from P2.344 trillion in 2008 as there was a steady build-up in international reserves from the BSP’s foreign exchange operations and receipts from investment income abroad that accounted for about 80 percent of total assets. The BSP said the higher asset balance could also be attributed to the P16.5-billion rise in loans and advances. On the other hand, its liabilities rose to P2.327 trillion in 2009 from P2.103 trillion in 2008 arising from higher balances in its deposit liabilities. The BSP said that special depository accounts went up to P549.1 billion last year from P402.4 billion in 2008 as investors decided to park their funds in the high-yielding instrument. The expansion in liabilities was also traced to higher currency issues and allocation of special drawing rights from multilateral lender International Monetary Fund, the central bank said. As a result, the BSP’s net worth eased by less than 1 percent to P238.8 billion from P241 billion in the 2009-2008 period, it said. The BSP said it will remit over P9 billion worth of dividends to the national government this year. It has remitted P4.475 billion to the government and would remit another P4 billion once the Commission on Audit completes a review of the central bank’s financial statement, the central bank added. — JE/VS, GMANews.TV