LATEST PUBLICATIONS
RPS 2021-06
Toward an Inclusive Social Insurance Coverage in the Philippines: Examining Gender Disparities
CSP-60
Delving into the Countrys Future Outlook
WP-2017-12
A Case Study of Company Best Practices on Regularization of Workers in Contracting Arrangements
WP-2017-11
A Legal Analysis on the Speedy Disposition of Labor Cases on Appeal

LATEST AV MATERIALS
PIDS WB 2021-0701
Challenges and Prospects of the Philippine Electric Vehicle Industry
PIDS WB 2021-0604
Senior High School Graduates' Prospects and Challenges in the Labor Market
PIDS WB 2021-0603
Improving the Land Tenure Security of Farmers and the Role of Agrarian Reform Beneficiary Organizations in Enhancing Agricultural Productivity
PIDS WB 2021-0602
Examining Philippine Regulatory Policies on Solid Waste Management
Publication Detail
BSP WPS 2016-01: The Impact of Foreign Exchange Liberalization Reforms on the Philippine Economy: An Initial Assessment

This paper examines the impact of easing the foreign exchange (FX) regulatory rules in the Philippines. Our preliminary findings imply that, in general, the easing of FX regulations has helped mobilize foreign exchange resources to finance requirements of the domestic economy. The significant contribution of greater foreign exchange transactions led to further opening of the country’s current and capital accounts. In turn, monetary and financial markets expansion ensued. Meanwhile, the impact on monetary policy appears to be marginal as the easing of FX rules has coincided with a declining exchange rate passthrough and a relatively stable inflation path. These developments suggest that the liberalization of FX rules may have underscored the importance of greater openness as essential component of macroeconomic policy. However, given the macroeconomic risks arising from foreign exchange markets and the case for regulation and supervision of other financial markets, the BSP’s vigilance to complement the easing of FX rules with prudential regulations and market surveillance to promote international investor confidence and market discipline continues to be crucially important. Despite the foreign exchange market risks largely due to global economic uncertainties, the economic benefits of easing FX rules by way of expansion of income become clear.

Bangko Sentral ng Pilipinas
Authors Keywords
Bayangos, Veronica, B.; Elloso, Lilia, V. ; Hallig, John Michael Rennie, G.; Yeung, Jodeth Niña, R.; Salamatin, April Michelle, D.; foreign exchange liberalization; ; capital account liberalization; foreign exchange;
Download PDF Number of Downloads
Published in 2016 and available for Downloaded 31,132 times since February 04, 2020
×
Please let us know your reason for downloading this publication. May we also ask you to provide additional information that will help us serve you better? Rest assured that your answers will not be shared with any outside parties. It will take you only two minutes to complete the survey. Thank you.


To use as reference:
If others, (Please specify):
Name: (optional)
Email: (required, but will not display)
Age:
Gender:
If Prefer to self-describe, please specify:
Level of Education:
Occupation:
If employed either part-time or full-time, name of office:
If others, (Please specify):
Would you like to receive the SERP-P UPDATES e-newsletter? Yes No
Use the space below if you have any comment about this publication or SERP-P knowledge resources in general.