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Author Topic: Philippine foreign exchange surplus dries up  (Read 1762 times)

Offline aerosick

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Philippine foreign exchange surplus dries up
« on: June 17, 2008, 12:45:16 AM »

MANILA, June 16 (Xinhua) -- The Philippines\' foreign exchange surplus shrank to 42 million U.S. dollars in May from 665 million dollars in the same period last year, due to surging prices of rice and fuel, the central bank said Monday.

The balance of payments surplus in May brought the five-month forex surplus to 2.2 billion U.S. dollars, Amando Tetangco Jr., the central bank governor, told reporters.

Tetangco said the surplus was mainly sustained by the strong inflows of overseas remittance, a pillar of the Philippine economy which contributes about 10 percent of the country\'s annual gross domestic products (GDP) growth.

Despite the slow-down of foreign investment inflows, the remittances sent by Filipino overseas workers grew to a record high of 1.4 billion U.S. dollars in March, bringing the combined remittance amount in the first quarter to 4 billion dollars, central bank data shows.

The Philippines is the world\'s biggest rice importer and buys over 90 percent of its oil consumption demand from overseas. The spike of rice and fuel prices in the international market has delivered a crashing blow to Philippine economy.
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