BSP OFFERS UKRAINIAN CURRENCY EXCHANGE
The Bangko Sentral ng Pilipinas (BSP) has started a program for the conversion of Ukrainian currency to help Filipinos escaping the conflict in Eastern Europe as Russia’s invasion continued to fan global inflation and take a toll on economies across the world.
The BSP said in a statement the Monetary Board approved the opening of a currency exchange facility for the Ukrainian hryvnia (UAH) in support of overseas Filipinos who are displaced or affected by the Russia-Ukraine conflict.
Data from the Department of Foreign Affairs showed that there were more than 300 Filipinos in Ukraine as of June 2019. Two weeks after Russia invaded Ukraine last Feb. 24, there were 200 who have returned to the Philippines.
The facility allows returning Filipinos from Ukraine, and their families, to exchange their UAH up to an equivalent of P20,000 per eligible person, “except for highly meritorious reasons and subject to approval of the BSP.”
Normally nonconvertible
UAH is not among 18 foreign currencies that are normally convertible with the BSP, which is led by Governor Benjamin Diokno. As of this writing, one UAH is equivalent to P1.77.
The exchange may be done through the BSP head office in Manila or through BSP regional offices and branches, as well as authorized agent banks.
Those who want to avail of the facility must present proof of the travel from Ukraine: original passport or certified true copy of the travel document issued by the Philippine Embassy in Poland with exit stamp by Ukrainian authorities and/ or authorities from other countries that served as exit points for their return to the Philippines.
According to Moody’s Analytics, Russia’s invasion of Ukraine has strained the global economic outlook as it brought higher energy and food prices, alongside additional supply-chain disruptions.
Fallout from the conflict has revved up inflation across the globe. In the Philippines, the conflict contributed to inflation rising to 4.9 percent year-on-year in April, breaching the BSP’s target band of 2-4 percent.
Fallout from Ukraine
“Household disposable income has taken a hit, particularly lower-income segments that are disproportionately exposed to the rise in essential goods like food and fuel,” Moody’s Analytics said. “Financial market conditions have already tightened and emerging markets have lost some favor.”
The Moody’s Analytics weekly business confidence survey showed that not only are businesses across the world retreating on their expectations of present conditions; they are becoming more concerned about future conditions.