The Bangko Sentral ng Pilipinas on Monday said it lowered its targets for balance of payments (BOP) and gross international reserves (GIR), because of the raging financial crisis in Europe.
The GIR will hit somewhere between $77.5 billion and $78 billion, Bangko Sentral Gov. Amando Tetangco Jr. It was expected to reach $79 billion this year.
The BOP surplus is seen narrowing down to $2.6 billion from an earlier of $2.8 billion, Tetangco noted in his keynote address before the Financial Market Forum.
“The revisions took into account the latest figures, actual figures–the prospects for the future–given the developments that are taking place in Europe as well as the US,” according to the central bank chief.
What the Bagnko Sentral decided to keep were its remittance and current account targets, he said.
Remittances will likely grow 5 percent this year, from the record $20.12 billion recorded last year, according to the Bangko Sentral.
Latest Bangko Sentral data showed the current account surplus was down 20 percent to $7.1 billion last year from $8.9 billion in 2010, largely on weak global demand.
However, monetary authorities decided to keep estimates for export growth unchanged at 10 percent for the year, said Tetangco. - V S, GMA News
source: gmanetwork.com