Peso takes a beating against dollar

Philippine peso had its worst day in three-and-a-half years, falling to P53 to the United States dollar. File Photo

 

By Mayvelin U. Caraballo, Manila Times

June 11, 2022

(UPDATE) THE Philippine peso had its worst day in three-and-a-half years, falling to P53 to the United States dollar on Friday.

The local currency bled 5 centavos to $53:$1 from the previous day's close of P52.95. It hasn't been this soft since Dec. 20, 2018, when it closed at 53.10:$1.

The peso's slide was probably due to market participants anticipating the US Federal Reserve's (Fed) 50-basis-point interest rate hike next week, Domini Velasquez, chief economist at China Banking Corp., said.

"Generally, we still see USD-PHP (dollar-peso rate) moving upwards both because of the Fed's aggressive monetary tightening cycle and domestically, the value of import purchases are still bound to increase as oil and food prices continue to remain elevated. Hence, still more demand for dollars," Velasquez said.

ING Bank Manila senior economist Nicholas Antonio Mapa said the peso was simply following the trend among regional currencies.

US inflation becoming everyone's problem.

"Hawkish tilt from the ECB (European Central Bank) and a likely similar stance from the Fed keeping Asian currencies on the backfoot. Markets await US inflation out later tonight for more direction," Mapa said.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the recent increase in US Treasury rates to above 3 percent for most long-term tenors contributed to the dollar's recent rise against key global currencies.

"Market sentiment also weighed as global crude oil prices posted new 3-month highs recently and also near 14-year highs, at above US$120 per barrel recently, that could potentially add to elevated inflation and could also add to the country's oil import bill," Ricafort said.

He also said the peso has recently depreciated slightly against the US dollar due to signs of a probable reduction in large banks' reserve requirement ratio later this year.

But the depreciation has been countered by the possibility of more local policy rate hikes during the next rate-setting sessions in June and August this year, Ricafort said.

Friday's close already hit the upper end of the government's P50-53:$1 peso-dollar exchange rate forecast for the year.

The Development Budget Coordination Committee said various depreciation (for example, US policy normalization, the Russia-Ukraine conflict, and widening trade gaps) and appreciation pressures (higher foreign exchange inflows via tourism, business process outsourcing and overseas Filipino workers remittances, and ample foreign exchange reserves) continue to influence the peso's medium-term outloo

𝐃𝐚𝐯𝐚𝐨 𝐝𝐞 𝐎𝐫𝐨'𝐬 𝐅𝐌𝐑𝐬 𝐬𝐩𝐮𝐫 𝐭𝐨𝐮𝐫𝐢𝐬𝐦 𝐚𝐧𝐝 𝐛𝐢𝐳 𝐨𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬

Another farm-to-market road opens new beginnings in Brgy. Napnapan Pantukan, Davao de Oro. Recently, completed Barangay Development Program (BDP) funded projects undergo ongoing official turn-over ceremonies by the provincial government.

In total, Davao de Oro ranks second after Davao City with the most projects from BDP of the National Task Force ELCAC, with one-hundred twenty-eight (128) projects received by sixty-five barangays (65) formerly under the brink of chaos due to insurgency.

The right implementation of the BDP-funded projects in DdO sets a trajectory for sustainable development in tourism in the province. Formerly hidden and hard to reach, more eco-tourism spots were now discovered and businesses began to boom which open more jobs for the people. From coffee shops in the mountain ranges and lake-side to highland resorts and adventure parks are some of BDP’s positive impacts in Davao de Oro.

According to the Department of Interior and Local Government (DILG), Davao de Oro is the best implementer for the BDP Projects, evidence of good governance through implementing government programs for the benefit of communities in far-flung communities.

Governor Tyron Uy, together with the DILG, PNP, AFP, and the office of Provincial Social Welfare and Development Office (PSWDO), personally handed the completed FMR in Brgy. Napnapan with a length of 1,580 meters, following other turn-overs of much-needed community projects such as water systems, and health centers. 

Other completed FMRs were now of service to the people of  Brgy. San Miguel Compostela, Lebanon Montevista, Brgy. Golden Valley Mabini, Brgy. Kahayag New Bataan, Brgy, Ngan Compostela, Brgy. Magangit, Sangab and Libay-libay of  Maco, Davao de Oro. (Jasteen Abella, PAO-IPRD, photos by G. Mativo)

GenSan fishers reeling from oil price increases

By Franz R. Sumangil, Manila Times

A GROUP of 300 fisherfolk in General Santos City has appealed to the government to help them through subsidies amid increases in oil prices.

Ruel Libawan, a member of the Minanga Buayan Fishermen Association, on Monday said his expenses for fuel had increased from P500 a day to P700.

"We went fishing early Monday morning on our motorized bancas but returned with only a small catch. It could not even pay for our gasoline expenses," Libawan noted.

Another member, Guillermo Libawan, said his gasoline expenses for a day were usually an average of P500 but now would amount to P1,000.

"We have no catch yet as we are afraid to go far into the sea as we might run out of gasoline. We hope the government can help us," Libawan added.

He said he has not yet heard of any government subsidy that could help them.

Dominic Salazar, president of the Soccsksargen Federation of Fishing and Allied Industries Inc. (SFFAII), called for the incoming Marcos administration to suspend the implementation of value-added tax and excise tax.

Salazar said fishing companies and other local fisherfolk have been suffering from spikes in operation costs as a result of continuing increases in oil prices.

He said the SFFAII has been meeting with the city government and other national agencies for possible remedies.

PH petroleum group backs government-run crude oil reserve

Salazar, also the president of the tuna fishing group South Cotabato Purse-Seiners Association, also said they might be able to sustain operations if the value-added and excise taxes are temporarily suspended.

During the 20th National Tuna Congress in 2018 hosted by the SFFAII, industry players passed a resolution urging the Office of the President to revisit the Tax Reform Acceleration and Inclusion Law.

In particular, they called for removal of the "excise tax on petroleum products that are directly used by the masses, otherwise, exempt such products from being subjected to excise tax, provided the same [products] are used for fishing and fishery activities."

Drastic steps pushed vs food, energy crunch

By Ma. Reina Leanne Tolentino

 and Eireene Jairee Gomez

President-elect Ferdinand “Bongbong” Marcos Jr. said over the weekend that boosting the agriculture sector would ensure food security in the country.File Photo

President-elect Ferdinand “Bongbong” Marcos Jr. said over the weekend that boosting the agriculture sector would ensure food security in the country.File Photo

THERE is an urgent need for the incoming administration of President-elect Ferdinand "Bongbong" Marcos Jr. to consider drastic measures that would ease the adverse effects of a looming food and energy crises in the country brought about by global environmental and health woes and the war in Ukraine.

Albay Second District Rep. Jose Ma. Clemente "Joey" Salceda said that fighting inflation and keeping food affordable should be the immediate economic priorities of the incoming administration.

"It's the most pro-poor policy the new president can take on his first few days in office," Salceda said.

The lawmaker, who has been reelected, said "I am also recommending a package of bills..."

"Apart from funding provisions and provisions allowing the President to redirect some unused appropriations and resources, I am also proposing that we enact a package of anti-inflationary measures, such as anti-price gouging in the food and fuel sectors, price unbundling for fuel, some key tariff removals for imported farm inputs such as fertilizers and equipment, and boosting the production of domestic energy sources such as coal, until we can overcome this global price problem," Salceda said.

   

The Philippine Statistics Authority (PSA) said on Tuesday that headline inflation in the country increased further to 5.4 percent in May 2022 from 4.9 percent in April 2022.

Marcos said over the weekend that boosting the agriculture sector would ensure food security in the country.

Energy Undersecretary Benito Ranque said one of the viable solutions which should go hand in hand with other energy measures is the use of modular nuclear reactors for deployment to island provinces suffering weeks of darkness and economic standstill in the aftermath of strong weather disturbances.

Why Russia's war on Ukraine poses a risk to global food security

Taking cue from the use of modular or mobile nuclear power reactors in the United States and China, Ranque said that he is inclined to believe that it is perfectly safe to adopt such — but with caution and strict supervision of whoever the Philippine government secures a contract with to provide what he deemed as extremely necessary "if only to ease the impact of an energy shortage in 2023, as predicted by no less than former Energy Secretary Jericho Petilla."

When asked as to what could have triggered an imminent energy crisis, Ranque admitted that the government has failed to facilitate the establishment of sufficient power plants in anticipation of the rapidly growing number of electricity users.

"Let's be candid about this one. The government wasn't able to push for building sufficient power generating facilities for the last 20 years. During these years, the population rapidly increased, which means more people are using the same buffer supply we had back in 2002."

Citing the compact size of the modular nuclear reactors, Ranque said that these facilities could easily be transported anywhere — with high emphasis to places frequently suffering from power outages in view of extreme weather disturbances.

Expert sees no need to cut fuel taxes

Moreover, Ranque said that each modular nuclear reactor has the capacity to produce more than enough electricity to light up an entire island like Cebu, Bohol, Negros, Samar, Leyte and other island provinces, which had suffered months living without electricity because the typhoons destroyed power grids in those areas.

Sought for safety assurance, Ranque said he would prefer to forge a contract which would include two essential provisions ─ one is for the supplier of the modular nuclear reactors to administer its use and number two, for the same supplier to find a place outside the country where they would dump or process nuclear wastes.

"They have the technology in disposing or handling the nuclear waste so it is best for us to include that provision in the contract," he noted.

UN: Food crises loom

Ranque, however, stressed that while the government is dealing with the immediate energy concerns, it is still most advisable to empower small electricity cooperatives in the countryside by helping them acquire its own renewable power plants while simultaneously working on the "underground cabling," prioritizing typhoon prone areas to allow uninterrupted power supply by the distribution utilities such as electric cooperatives.

The United Nations on Tuesday warned about multiple, looming food crises on the planet, driven by climate "shocks" like drought and worsened by the impacts of the Covid-19 pandemic and the war in Ukraine that have sent fuel and food prices soaring.

Magnitude 5.2 quake strikes offshore of Davao Oriental — Phivolcs

by Ellalyn De Vera-Ruiz, Manila Bulletin

A 5.2-magnitude earthquake offshore of Davao Oriental occurred at around 4:37 a.m., Wednesday, June 8, said the Philippine Institute of Volcanology and Seismology (Phivolcs).

Phivolcs traced the epicenter of the earthquake at 103 kilometers (km) southeast of Tarragona, Davao Oriental, and was shallow at a depth of 62 km.

It was initially measured as a magnitude 5.1 quake but Phivolcs later revised it to magnitude 5.2.

The tremor was “moderately strong” at Intensity IV in Tarragona and Caraga, Davao Oriental.

Meanwhile, it was felt as a “weak” tremor at Intensity III in Manay, Davao Occidental.

Phivolcs’ instruments also recorded the quake at Intensity II in Malungon, Sarangani and Intensity I in Tupi, South Cotabato and Nabunturan, Davao de Oro.

It said the earthquake was tectonic, which means it was caused by the movement of an active fault near the area.

Phivolcs advised the public to stay vigilant as aftershocks may occur due to this earthquake.

True charity surpasses our human systems

By Fr. Roy Cimagala*

“I TELL you, unless your righteousness surpasses that of the scribes and Pharisees, you will not enter into the Kingdom of heaven.” (Jn 5,20) Words of Christ that warn us of the danger of self-righteousness as exemplified by the scribes and Pharisees of his time and that undermine the true charity that comes from God who is the very essence of love as fully manifested by Christ.

We have to understand that this charity surpasses whatever human standard we have about love. This charity is a love without measure, given without calculation, without expecting any return. It just gives and gives, even if along the way it encounters difficulties, rejection, suffering. It embraces them, not flee from them. By its nature, it is given gratuitously. 

Love engenders generosity and its relatives: magnanimity, magnificence, compassion, patience, pity, etc. This is the language of love, the currencies it uses. It thinks big, even if the matter involved is small according to human standards. In fact, it’s love that makes small, ordinary things big and special.  

    

      That’s in theory. In practice, though, there can be elements that put limits and conditions to that love. This can be due to a number of reasons. One of them is because man grows by stages, and his capacity to love also develops in stages. It goes through a development timeline, much like one’s growth timeline from childhood to adulthood and maturity.      

We have to understand that to be able to love, we need to be with God, for God is love. He is the source, pattern and end of love. All our loves here on earth, to be real, have to be inspired by that love that is in God. Otherwise, they are fake.   

It stands to reason then that we need to go to him, to pray and meditate on his love—how he created us and endowed us with the best things in life, making us his image and likeness, and in fact children of his.      

 

We need to realize deeply that his love goes to the extent of forgiving us for our sins and stupidities, and not only by decreeing things, but by assuming even our sinfulness and dying to it.     

We need to feel that love in a very direct and immediate way, which can only be achieved first of all with his grace, but also with our effort. We need to feel that such love is the one that inspires, directs and energizes our loves here on earth. 

So, we really need to spend time entering into this reality, first of all, by praying, by meditating, then by studying the doctrine of our faith, since God’s love is not mere sentiments. It involves truth whose substance is passed on to us through the doctrine revealed and lived by Christ, and now authoritatively taught by the Church.    

We need to outgrow our tendency to fall for an unrealistic and sugary understanding of love, so common these days, especially among the young, or worse, associating love with the purely carnal and selfish. Unfortunately, there are many caught in this kind of predicament.   

   

      When we have this kind of love, we will spring into action, always with joy and peace. Sadness, feeling lazy and the like are dregs and signs of self-love. God’s love, on the other hand, makes us very alive even in the midst of so much trials and suffering.

* Chaplain  Center for Industrial Technology and Enterprise (CITE), Talamban, Cebu City

Email: roycimagala@gmail.com

Why is Sinigang so popular among Filipinos?

Bisaya

Proud Bisaya Ko

Barok and Takya Blog | Bisaya Podcast

Sinigang is a famous super sabaw[1] among Filipinos for its sour and savoury flavour. The sourness of the soup comes from tamarind, which is a fruit that is commonly used in Southeast Asian cuisine. Tamarind gives the soup its distinctive tart flavour, which is balanced out by the savoury taste of the meat or seafood that is used in the dish.

 Sinigang[2] is also unique because it can be made with meat or seafood, including chicken, pork, shrimp, and fish. This flexibility makes it a popular choice for home cooks and professional chefs. In addition, Sinigang is relatively easy to make, and it can be tailored to individual taste preferences. For these reasons, Sinigang remains a popular dish in the Philippines.

Footnotes

[1] Filipino Soups You Need to Try: SUPER SABAW Edition

[2] 6 Best Sinigang Dishes You Can Make at Home

Marcos vows rules-based order in West PH Sea

By Catherine S. Valente, Manila Times

 

COURTESY CALLS President-elect Ferdinand ‘Bongbong’ Marcos Jr. meets Ambassador Anke Reiffenstuel of Germany, Ambassador Mohammed Ride El Fassi of Morocco and Ambassador Jorge Moragas of Spain in his headquarters in Mandaluyong City on Tuesday, June 7, 2022. Marcos was elected president in the May 2022 elections and will take his oath on June 30. PHOTOS FROM BBM MEDIA BUREAU

PRESIDENT-ELECT Ferdinand "Bongbong" Marcos Jr. has agreed to promote international rules-based order and the rule of law to maintain peace and stability in the disputed West Philippine Sea.

The commitment was made during his meeting with German Ambassador Anke Reiffenstuel at his headquarters in Mandaluyong City on Tuesday, where they discussed the bilateral cooperation between the Philippines and Germany.

Speaking to reporters, Reiffenstuel said she and Marcos discussed their interest in protecting the maritime sector through enforcing the rule of law.

"We exchanged and we explored our joint interest our common interest in protecting international rules based order and the rule of law that needs to be applied also in the maritime sector," Reiffenstuel said in a press briefing after her private meeting with Marcos.

"We didn't go into details, but we realized that we have a common interest to continue with our cooperation," she added.

Apart from enhancing maritime cooperation between their two countries, Reiffenstuel said she and Marcos also discussed global challenges, including climate change.

"We exchanged [views] about the ongoing bilateral cooperation and the cooperation in the international frame in the multilateral formats. We also discussed potentials for furthering cooperation not only on mutual interests but also on addressing global challenges like climate change," she said.

The envoy said that she informed Marcos about the ongoing programs of Germany to help the Philippines in addressing climate change, including their €25 million donation for climate change-related projects.

The two also talked about global food security, which has been greatly affected by the war between Russia and Ukraine.

"I informed him about the upcoming international ministerial conference on global food security. This is also [set] against the background of the impact of the Russian war against Ukraine, with regard to the challenges on global food security," she said.

Reiffenstuel said that they also tackled the safeguarding of the rule of law and protecting human rights and  also underlined the importance Germany attaches to the rule of law and safeguarding human rights, and of our continued commitment to the same," the ambassador said.

"In this context that I also mentioned, German support, contribution and funding for the United Nations joint program on human rights here in the Philippines continues," she added.

The ambassador said that they also focused their discussion on renewable energy. Among Marcos' campaign promises was the provision of lower power rates to the people.

"Renewable energies, of course, are of great importance to us, to Germany. We exchanged ideas about the experiences and the commitment, the distribution and the share of renewable energies in our two countries," she said.

Reiffenstuel said that Marcos illustrated his early commitment to renewable energy by mentioning the wind farm in Ilocos Norte, and they agreed that there is a need to continue deepening the discussions, since this is an area of mutual interest.

Aside from the German ambassador, Ambassador Jorge Moragas of Spain and Ambassador Mohammed Ride El Fassi of Morocco also paid courtesy calls on Marcos.

Inflation, rate woes drag shares anew

By Agence France-Presse and Manila Times

HONG KONG: Stock markets struggled on Tuesday on long-running worries over surging inflation and rising interest rates, which overshadowed hopes that China would ease off its regulatory drive against its beleaguered technology giants.

A spike in United States Treasury yields took the wind out of the proverbial sails for Wall Street, with the focus now on the release of US and Chinese inflation data at the end of the week.

Analysts are betting that the Federal Reserve (Fed) would lift borrowing costs by half a point at its next three meetings as officials try to get a grip on runaway consumer prices.

But that is causing discomfort on trading floors as investors fret over the impact on economic growth and firms' bottom lines.

"Inflation concerns are not going anywhere fast," Fiona Cincotta of City Index said. "Rising crude oil prices and a strong labor report have lifted bets that the Fed may need to act aggressively to rein in inflation."

      

SPI Asset Management's Stephen Innes said "investors are hyper-focused on inflation, economic growth and future Fed policy."

Most, he added, "assume the worst and think a financial tsunami [would] hit the US and global markets, thanks to the quorum of US-based bank CEOs (chief executive officers) that have given the gloomy growth narrative their imprimatur. Anything less than that outcome is going to surprise a lot of folks."

Equity markets were mixed in Asia and Europe.

Tokyo rose, helped by a softening of the yen to a two-year low owing to expectations that the Bank of Japan would not tighten monetary policy just as US rates climb.

Shares mixed as chances for rate increases grow

Manila and Jakarta also edged up, but there were losses in Seoul, Singapore, Mumbai, Bangkok, Wellington and Taipei.

Sydney dropped more than 1 percent after the Australian central bank announced a bigger-than-forecast half-point rate hike to quell inflation.

Hong Kong fell and Shanghai ticked slightly higher, even as heavyweights Alibaba and JD.com led a rally among tech firms following a report that China was close to ending a painful crackdown on ride-hailing app Didi Global and restoring its main apps this week. Didi's US-listed notes soared more than 20 percent.

The Wall Street Journal said probes into two other firms — Full Truck Alliance and recruitment platform Kanzhun — were fanning optimism for the sector's outlook after a long period of hefty selling pressure.

Stocks mixed as inflation, rate woes temper rally

"This was seen as a signal that the regulatory crackdown on Chinese tech firms was starting to end... as China focuses on stabilizing the economy following Covid restrictions," National Australia Bank's Tapas Strickland said.

London was flat in early trade, but Paris and Frankfurt fell.

Markets have seen some leveling out in recent weeks as the easing of restrictions in China helps to offset some of the worries about higher rates and the impact of Russia's invasion of Ukraine.

US tech rout, China data drag markets

But market-watcher Louis Navellier warned there was still plenty more volatility to come.

"If history repeats, we could be down tomorrow, then up on Wednesday, then down on Thursday and possibly up on Friday," he said in a commentary.

"So just get used to these up-down, up-down oscillations because they are going to continue," he added.

"I want to remind investors to not get too excited when the market rallies because it is going to continue to oscillate. There is just too much uncertainty out there."

More foreign envoys visit Marcos; find out who they are

National flags of Spain, Germany, and Morocco (Unsplash)

by Ellson Quismorio, Manila Bulletin

Ambassadors from these countries will be visiting President-elect Bongbong Marcos at his headquarters Tuesday morning, June 7 in another series of courtesy calls.

Specifically, the ones who will be meeting in Marcos are Ambassador Jorge Moragas of Spain, Ambassador Anke Reiffenstuel of Germany, and Ambassador Mohammed Ride El Fassi of Morocco.

The courtesy calls from the envoys will take place at the BBM headquarters in Mandaluyong City.

On Monday, June 6, the incoming Philippine leader hosted ambassadors from Italy and Association of Southeast Asian Nations (ASEAN) in separate courtesy calls.