Central bank trims losses in 9 months

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) managed to trim its losses in the first nine months after booking huge gains on foreign exchange fluctuations in the third quarter of the year.

Data showed the net loss of the central bank fell 43.2 percent to P3 billion from January to September compared to P5.28 billion in the same period last year.

Revenues jumped 19.4 percent to P43.19 billion in the first nine months from P36.17 billion, while expenses went up 6.5 percent to P53.84 billion from P50.54 billion.

During the period, gains on foreign exchange fluctuations booked by the BSP decreased 15.9 percent to P7.65 billion from P9.1 billion.

The BSP books gains or losses from fluctuations in foreign exchange rates on matured, sold, paid and/or exchanged or settled foreign exchange assets and liabilities.

For the third quarter alone, the net loss of the BSP dropped 85.4 percent to P856 million from P5.89 billion in the same quarter last year.

The BSP said its revenues declined 6.9 percent to P11.81 billion from July to September compared to P12.69 billion in the same period last year.

The central bank traced the decline to the 78.8 percent drop in miscellaneous income due mostly from reduced trading gains from domestic and foreign currency securities.

Likewise, it added that net income from branches fell 48.2 percent during the period.

On the other hand, BSP said total expenditures declined by 7.4 percent to P17.99 billion in the third quarter from P19.43 billion in the same quarter last year due mainly to lower interest expense on loans payable and other foreign currency deposits as well as cost of minting or printing of currencies.

However, gains booked by the BSP on foreign exchange fluctuations surged 526 percent to P5.33 billion in the third quarter from only P852 million in the same quarter last year.

The primary objective of the BSP is to promote price and financial stability conducive to balanced and sustainable eco- nomic growth. It also seeks to maintain monetary stability and the convertibility of the peso by performing a wide range of functions involving money, banking and credit in the perfor- mance of this mandate for stabilization.

The primary objective of the BSP is to promote price and financial stability conducive to balanced and sustainable eco- nomic growth. It also seeks to maintain monetary stability and the convertibility of the peso by performing a wide range of functions involving money, banking and credit in the perfor- mance of this mandate for stabilization.