MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) urged exporters to hedge their dollar inflows against the fluctuations of foreign exchange rates in order to boost their competitiveness and survive in the global market.
In an interview with reporters, BSP Deputy Governor Diwa Guinigundo said a study conducted by the International Monetary Fund (IMF) showed exporters could invest in financial instruments to help them save costs.
“So the IMF was saying to take advantage of financial products such as hedging,” Guinigundo stressed.
He pointed out that exporters could hedge if they are complaining about the continued strengthening of the peso against the dollar.
“If they complain that they are losing in the exchange rate conversion they can hedge but they have to pay the fee but that is the price for being uncertain exchange rate in the future,” he added.
According to him, hedging their dollar inflows against the fluctuations of foreign exchange rates would be one of the major topics during the road shows to be conducted by the BSP starting April.
He said the BSP together with some banks would conduct road shows in Metro Manila and Davao this April, Pampanga this May, and Cebu this June.
The BSP official said hedging their foreign exchange costs would help protect exporters against the volatility of the peso against the dollar.
The IMF study, he explained, also stressed the importance of operating efficiencies including turnaround time of exporters to be able to compete globally.
Earlier, Guinigundo told exporters to shape up instead of complaining about the strengthening of the peso against the dollar.
“Our export sector is very important and we realize their difficulty however they should be reminded that competitiveness in the global market extends beyond a weak currency,” he said earlier.
He pointed out that the BSP has not been remiss in pursuing its mandate to smoothen the volatility of the peso against the dollar either when the peso is strengthening or weakening against the green back. –Lawrence Agcaoili (The Philippine Star)
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September
Monthly Observances:
Health, Safety, and Sanitation Month
Clean-up Month
Civil Service Month
National Peace Consciousness Month
Social Security Month
Rule of Law Month
National Teachers’ Month (Sept 5-Oct 5)
Weekly Observances:
Sept 17 – 23:
World Clean and Green Week
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Week 4: Medicine Week
Last Week: Family Week
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Last Friday: National Maritime Day
Sept 8: National Literacy Day
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