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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Invoke Article 33 of the ILO constitution
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Accept National Unity Government
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Monthly Observances:
Women’s Role in History Month
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Week 1: Environmental Week
Women’s Week
Week 3: Philippine Industry and Made-in-the-Philippines
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Last Week: Protection and Gender-Fair Treatment
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March 8: Women’s Rights and
International Peace Day;
National Women’s Day
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Mar 15 — World Consumer Rights Day
Mar 18 — Global Recycling Day
Mar 21 — International Day for the Elimination of Racial Discrimination
Mar 23 — International Day for the Right to the Truth concerning Gross Human Rights Violations and for the Dignity of Victims
Mar 25 — International Day of Remembrance of the Victims of Slavery and the Transatlantic Slave Trade
Mar 27 — Earth Hour
