Bangko Sentral holds confab on external competitiveness
CEBU CITY - The Bangko Sentral ng Pilipinas (BSP) recently held a conference on “Gearing Up for External Competitiveness,” one of their key component programs of its Economic and Financial Learning Program.
Among their guest speakers is economist and ex-cabinet official Dr. Cielito Habito, who talked about the ASEAN Economic Community (AEC) and the Philippine Economy Implications and Imperatives. He also shared how far the Philippines have gone with ASEAN, which is currently the largest trading partner at 21.7%.
Habito pointed out that as of 2016, price inflation is at a historical low at 1.8% and the unemployment rate breaks below 5%. He said the Philippines is also leading ASEAN and East Asia with 2016 GDP growth of 6.8%.
Part of the AEC Gameplan is aimed at addressing high poverty, unusual economic inequality and to expand the Micro, Small and Medium Enterprises’ access to finance and technology, promote education for entrepreneurship and inclusive value chains, and improve market access.
Other topics tackled during the meeting were Asia’s Economic Outlook and Middle-income Challenge, Exchange Rate: Trend and Issues, BSP’S Foreign Exchange Regulations, Introduction to Hedging: Managing Foreign Exchange Risk, and Regulatory Framework for Derivatives.
Through the biannual conference, BSP aims to promote awareness of exporters/importers and other sectors exposed to foreign exchange risks about the benefits of hedging and how FX risks could be managed through the use of derivatives and present the other determinants of external competitiveness such as quality of products, technology and market size.