Turkey eyes increased bilateral trade with PH
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Business
Ray S. Eñano, Editor Roderick T. dela Cruz, Assistant Editor business@manilastandardtoday.com extrastory2000@gmail.com SATURDAY, AUGUST 6, 2016
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Forex reserves in July hit new high
PSe comPoSite index Closing August 5, 2016
8300 7840 7380 6920 6460 6000
7,970.35 8.22
PeSo-dollar rate
Closing AUGUST 5, 2016 48.00
NEW MB MEMBER. Finance Secretary Carlos Dominguez III (center) takes his oath of office Friday before Bangko Sentralng Pilipinas
Governor Amando Tetangco, Jr. (fifth from left) as President Duterte’s designated Cabinet member representative to the Monetary Board, the central bank’s policy-making body. Dominguez completes the seven-member MB, headed by Tetangco as chairman. Also at the oath-taking ceremony are (from left) members Juan de Zuniga Jr, Felipe Medalla, Alfredo Antonio, Valentin Araneta and Armando Suratos.
RCBC pays P1-b fine after bank cyber heist By Julito G. Rada
46.00 45.00
P46.900
44.00
CLOSE
43.00
HIGH P46.900 LOW P47.020 AVERAGE P46.959 VOLUME 399.900M
P400-P640.00 LPG/11-kg tank P34.15-P41.20 Unleaded Gasoline
oPriceS il P today
P24.35-P27.75 Diesel P28.50-P36.85 Kerosene Bangko Sentral ng Pilipinas Friday, August 5, 2016
F oreign e xchange r ate Currency
Unit
US Dollar
Peso
United States
Dollar
1.000000
47.0140
Japan
Yen
0.009881
0.4645
UK
Pound
1.311200
61.6448
Hong Kong
Dollar
0.128931
6.0616
Switzerland
Franc
1.027116
48.2888
Canada
Dollar
0.768344
36.1229
Singapore
Dollar
0.745379
35.0432
Australia
Dollar
0.762700
35.8576
Bahrain
Dinar
2.651746
124.6692
Saudi Arabia
Rial
0.266667
12.5371
Brunei
Dollar
0.742611
34.9131
Indonesia
Rupiah
0.000076
0.0036
Thailand
Baht
0.028630
1.3460
UAE
Dirham
0.272287
12.8013
Euro
Euro
1.113200
52.3360
Korea
Won
0.000899
0.0423
China
Yuan
0.150543
7.0776
India
Rupee
0.014963
0.7035
Malaysia
Ringgit
0.246975
11.6113
New Zealand
Dollar
0.717100
33.7137
Taiwan
Dollar
0.031581
1.4847 Source: PDS Bridge
T
HE Monetary Board, the policy-setting body of Bangko Sentral ng Pilipinas, fined Rizal Commercial Banking Corp. P1 billion for its involvement in the $81-million bank heist that rocked the country’s financial system in February this year. “Monetary Board approved the imposition of supervisory enforcement action on RCBC to pay the amount of P1.0 billion, in connection with the special examination conducted by the Bangko Sentral ng Pilipinas relating to the Bangladesh Bank cyber heist,” the board said in a statement released late Friday afternoon. The board said it was the “largest amount ever” approved as part of its supervisory en-
forcement actions on a supervised financial institution. The $81 million was believed stolen by cyber thieves from the account of Bangladesh Bank in the Federal Reserve in New York and entered the local financial system through a branch of Rizal Commercial Banking Corp. on Jupiter Street in Makati City earlier this year. The dirty money ended up later in local casinos and laundered by a number of individuals.
“This affirms the BSP’s strong commitment to ensure the stability of the country’s financial system through strong and effective regulation of BSFIs (Bangko Sentral supervised financial institutions),” the Monetary Board said. The regulator said it recognized RCBC’s efforts in instituting changes to strengthen its anti-money laundering and counter-terrorist financing risk management system and governance culture. RCBC said in a statement Friday it would comply with the Monetary Board by paying P1 billion to Bangko Sentral. “This amount shall be paid in two equal tranches over a oneyear period, P500 million upon approval by the Monetary Board and P500 million one year after,” RCBC said. RCBC’s president and chief
executive officer Gil Buenaventura said “while the payment involves a large amount, RCBC believes that this is part of increasing regulatory oversight and restrictions and we will comply with the MB Resolution.” “With this payment, RCBC affirms its continued viability and determination to fulfill its firm commitment against money laundering, terrorism and other transnational crimes to ensure the stability of the banking system,” Buenaventura said. He said RCBC already made provisions for the payment. Buenaventura added that “together with the payment of this amount, RCBC is instituting changes in its AML system and processes, making it among the most prepared in terms of thwarting money laundering attempts in the Philippines and the region.”
Inflation rate in July unchaged at 1.9%—PSA By Gabrielle H. Binaday HEADLINE inflation in July was unchanged at 1.9 percent from June due to slower increases in food prices, the Philippine Statistics Authority said Friday. The National Economic and Development Authority predicted inflation would be manageable for the rest of the year. “The steady inflation in July is due to slower increases in food prices, which were able to offset higher electricity charges,” said Economic Planning Secretary Ernesto Pernia. Core inflation, which excludes
selected volatile food and energy prices, alo remained stable at 1.9 percent in July. The July inflation rate was within the Bangko Sentral ng Pilipinas forecast of 1.5 percent to 2.4 percent and the median market expectations of 1.9 percent. “The manageable inflation trend in the first seven months of 2016 is expected to continue for the rest of the year considering the expanding productive capacity of the domestic economy, persistently low oil prices, solid private household consumption and investment, buoyant business and consumer sentiment,
and adequate credit and domestic liquidity,” said Pernia, who is also Neda director-general. The headline inflation in the first seven months of 2016 averaged at 1.4 percent, or below the low end of the government’s inflation target of 2.0 percent to 4.0 percent. “We are thus expecting fullyear inflation to average at around 1.98 percent,” Pernia added. Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said inflation would remain manageable in the coming months despite the risks to the outlook
this year, particularly the weaker global economy. “Inflation for July at 1.9 percent is within our forecast range of 1.5 to 2.4 percent for the month. This supports our view that monthly inflation will creep to within target range, with full year average just at or slightly below the lower bound for 2016,” Tetangco said in a text message. “The risks to the inflation outlook remain broadly the same— weaker global growth outlook counterbalanced by steady domestic aggregate demand,” Tetangco said. With Julito G. Rada
Aussie’s P60-b investment lifts Subic free port’s status By Othel V. Campos SUBIC Bay Freeport may become one of the top premier global ports with the establishment of a P60-billion project by an Australian company, the Subic Bay Metropolitan Authority said Friday. SBMA chairman Robert Garcia said the Asian Institute of Aviation would occupy seven hectares of land near the Subic Bay International Airport and build hangars and food processing stations for its intermodal logistics business. “The business model of the company is to export from Australia to China, Japan, and other Asian countries, via airplanes,” Garcia said. The company will import meat, seafood and other agricul-
tural products from Australia by plane or by ship for processing and customized packaging based on customer specifications in the Subic free port. Garcia said AIA would be joined by another Australian firm, which will buy into the company for the new operations. The Australian partner has been doing the processing in Australia, but with the high cost of operations in that country, it has turned to the Philippines to save on costs. “They will ship out by air since they have seven jets. They will also ship out via seaport, and their volume for the seaport is 60 containers per month,” said Garcia citing intermodal operations would maximize company logistics.
MEDAL FOR LOPEZ. Ambassador Manuel Lopez (second from left) receives the Philippines Japan Society medal of merit from PJS president Francis Laurel and PJS vice president Gerard Sanvictores (rightmost). At left is the Ambassador’s wife, Maritess Lopez. Lopez received the medal during the 38th Philippines-Japan Friendship Dinner and Awards Night on July 29, 2016. The medal is the highest award the society confers upon Filipino and Japanese nationals who have significantly contributed to nationbuilding in terms of the promotion of friendship and stronger relations between the two countries. He served as the country’s Ambassador to Japan from January 2011 to June 30, 2016.
THE country’s gross international reserves in July reached a record-high of $85.491 billion due mainly to the foreign exchange operations of Bangko Sentral ng Pilipinas and revaluation adjustments in gold holdings as the price of the precious metal increased in the international market. The July figure surpassed the previous all-time high of $85.284 billion recorded a month ago. They were above the Bangko Sentral’s target of $82.7 billion this year. Bangko Sentral Governor Amando Tetangco Jr. in a statement Friday income generated from investments abroad, as well as net foreign currency deposits by the national government also contributed to the higher reserves. “These were partially offset by payments made by the national government for its maturing foreign exchange obligations,” Tetangco said. Data showed the amount of Bangko Sentral’s gold holdings in July rose to $8.505 billion from $8.336 billion a month ago. Foreign investments increased to $73.322 billion from $73.295 billion in June. Tetangco said the end-July reserves level could cover 10.5 months’ worth of imports of goods and payments of services and income. The reserves were equivalent to 6 times the country’s short-term external debt based on original maturity, and 4.3 times based on residual maturity. Julito G. Rada
IN BRIEF Ford sales jumped to record in July
FORD Philippines on Friday said automotive sales in July jumped 61 percent to a record 2,748 units. Ford’s year-to-date sales also surged 61 percent to 19,517 units, making the it one of the fastest growing automotive brands in the Philippines in 2016. “Our big three Ford nameplates continue to drive record sales this year, attracting customers across the country who appreciate the value, quality and safety that our global Ford vehicles deliver,” said managing director Lance Mosley. The record monthly sales was led by the strong demand for the EcoSport, Ranger and Everest. The EcoSportcompact SUV remained one of Ford’s topselling brands in the Philippines. Othel V. Campos
Ayala, MPIC pick beep card partner AF PAYMENTS Inc., a consortium led by Ayala Corp and Metro Pacific Investments Corp., said on Friday it teamed up with Froehlich Tours, one of the premium point-to-point (P2P) bus systems in the metro, to accept payment through beep card. “This is the first time that we’re implementing the beep system for a premium P2P bus line. We hope that commuters enjoy the convenience using beep card and the comfort of Froehlich Tours’ modern bus fleet,” said AF Payments president and chief executive Peter Mahe. Beep card is a tap-and-go payment system accepted in all three elevated railways (LRT 1, LRT 2, and MRT 3) and select bus lines. The partnership covers the routes Trinoma to Glorietta 5 and vice-versa, and SM North EDSA to SM Megamall and vice-versa. Darwin G. Amojelar