BusinessMirror JAN BOP SURPLUS HITS $3.1B, A FIRST

By Cai U. Ordinario @caiordinario

T he country posted a BOP surplus of $3.1 billion in January 2023, a reversal from the $102-million BOP deficit recorded in the same month last year.

T he surplus in January was the highest surplus recorded by the country in more than two years or since December 2020.

“ The BOP surplus in January 2023 reflected inflows arising mainly from the National Government’s [NG] net foreign currency deposits with the BSP, which include proceeds from its issuance of ROP Global Bonds, and net income from the BSP’s investments abroad,” the BSP said.

R izal Commercial Banking Corporation (RCBC) Chief Economist Michael Ricafort said this was also helped by the improvement in the government’s net income from investments abroad.

T his was due to the gains in the US/global financial markets during the month amid the China economic reopening narrative since December 2022.

He added that another factor was the recent narrowing of the trade deficit/net imports to the narrowest in nearly a year recently.

The prices of imported oil and other imported commodities also corrected low in recent months amid risk of US recession after aggressive Fed rate hikes earlier in 2022,” Ricafort said.

GIR back at $100B

MEANWHILE , this improvement in the BOP position led to an increase in the country’s Gross International Reserves (GIR) and led it back to the $100-billion level at the end of January.

T he GIR reached $100.7 billion as of end-January 2023 from $96.1 billion as of the end of December 2022.

T he latest GIR level, BSP said, represented a more than adequate external liquidity buffer equivalent to 7.6 months’ worth of imports of goods and payments of services and primary income.

PHL TO PARTICIPATE IN WORLD EXPO 2025–FRASCO

By Ma. Stella F. Arnaldo @akosistellaBM Special to the

BusinessMirror

THE Philippines will be putting its best foot forward as it participates in the World Expo 2025 in Osaka, Kansai in Japan.

Tourism Secretary Christina Garcia Frasco made the announcement on Saturday, at the opening of the two-day Japan Fiesta 2023, underscoring the country’s desire to further strengthen its ties with Japan. The Philippines’s participation in the next world expo from April 13 to October 13, 2025, “will show the best of the Filipino people,” she stressed. The Philippines also participated

GCG backs giving 25% of MIF profit for the poor

By Jasper Emmanuel Y. Arcalas @jearcalas

THE Governance Commission for GOCC (GCG) on Monday backed the inclusion of a provision in the Senate’s version of the Maharlika Investment Fund (MIF) that would mandate allocating at least 25 percent of the net profits of the proposed sovereign wealth fund for poverty alleviation programs.

G CG reiterated that it supports Congress’s efforts in ensuring the country’s “economic transformation, growth and sustainability.” in the last World Expo, which was held in Dubai from October 1, 2021 to March 3, 2022.

“ The GCG, therefore, supports the inclusion of the provision in SB No. 1670 providing at least 25 percent of the net profits of the MIC [Maharlika Investment Corp.] to families living below the poverty threshold,” it said in a statement.

T he GCG also emphasized that the MIC, which shall oversee the management of the MIF, will be within its purview since it bears attributes of an ordinary Government-Owned or -Controlled Corp. (GOCC).

The Governance Commission noted that the MIC bears the attributes of a Government-Owned or -Controlled Corporation [GOCC] such as its charter, functions relating to public needs, and state ownership,” it said.

Held at the Glorietta Activity Center and Palm Drive Activity Center in Makati, Japan Fiesta 2023 was organized by the Embassy of Japan, Japan National Tourism Organization (JNTO), Japan Foundation Manila, Japanese Chamber of Commerce and Industry of the Philippines Inc. (JCCIP), and Japanese Association Manila Inc., collectively known as the Japanese Fiesta Council. Japan’s Ambassador to Manila Koshikawa Kazuhiko described the event as a “joyous celebration,” where visitors were able to have “an authentic experience of Japan right in the heart of Makati.”

He added, “I am delighted that Filipinos are becoming more interested in Japanese culture and using their ingenuity to make it their own, thus creating a unique blend of both our cultures.”

For her part, Frasco confessed to being a fan of Japan products, like many Filipinos. “I myself am a huge fan of sashimi, sake, and sakura. And through this Japan Fiesta, you’re giving our fellow Filipinos an opportunity to take a peek into the window of Japan, and hopefully, visit your beautiful country. This mutual relationship, we hope to be able to develop in the next few years through the help of our good Ambassador.”