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To determine the role of the Bangko Sentral ng Pilipinas (BSP) on the Foreign Exchange Market 4. To determine the future movement of Philippine peso against the US dollar and its effect to the country’s economy.
III. HYPOTHESES
The researchers believe to the following hypothesis: 1. The effects of appreciation has a great impact—positive and negative—on consumption, government spending, investment, import-export and debt servicing; 2. Philippine peso appreciation was caused by several factors such as the robust economy of the Philippine as well as the increasing amount of remittances from the overseas Filipino workers (OFWs). 3. The role of the Bangko Sentral ng Pilipinas(BSP) is to maintain the stability of Philippine peso against other currency 4. The Philippine peso will further appreciate in the near future against the US dollar and this appreciation will boost the economy through saving.
IV. SIGNIFICANCE OF THE STUDY The study is conducted to determine the impact of peso appreciation on the economy. It shows the effect on different sectors of the …show more content…
VI. REVIEW OF RELATED LITERATURE
“The Indian Rupee--US Dollar Exchange Rate: The impact of Strengthening Currency”
Reasons behind the appreciation of the Rupee in 2006-2007 Toward the end of 2006, foreign exchange inflows, especially of dollars, into India started rising sharply. This put upward pressure on the rupee’s exchange rate against the dollar. India’s steady economic growth offered several opportunities for foreign companies. Between April 2006 and March 2007, FDI of $16 billion flowed to India.
VII. RELATED STATISTICS
Foreign currency reserves, gold, special drawing rights (SDRs), foreign investments as well as the Reserve Position in the Fund (RPF) are main components of the Gross International Reserves (GIR). The GIR constitutes the foreign assets valued mark-to-market, which are readily available to and controlled by the BSP for direct financing of payments imbalances and for managing the magnitude of such imbalances. The BSP estimates the level of Overseas Filipino Worker (OFW) remittances, which props up the country’s foreign currency reserves. (BSP
III. HYPOTHESES
The researchers believe to the following hypothesis: 1. The effects of appreciation has a great impact—positive and negative—on consumption, government spending, investment, import-export and debt servicing; 2. Philippine peso appreciation was caused by several factors such as the robust economy of the Philippine as well as the increasing amount of remittances from the overseas Filipino workers (OFWs). 3. The role of the Bangko Sentral ng Pilipinas(BSP) is to maintain the stability of Philippine peso against other currency 4. The Philippine peso will further appreciate in the near future against the US dollar and this appreciation will boost the economy through saving.
IV. SIGNIFICANCE OF THE STUDY The study is conducted to determine the impact of peso appreciation on the economy. It shows the effect on different sectors of the …show more content…
VI. REVIEW OF RELATED LITERATURE
“The Indian Rupee--US Dollar Exchange Rate: The impact of Strengthening Currency”
Reasons behind the appreciation of the Rupee in 2006-2007 Toward the end of 2006, foreign exchange inflows, especially of dollars, into India started rising sharply. This put upward pressure on the rupee’s exchange rate against the dollar. India’s steady economic growth offered several opportunities for foreign companies. Between April 2006 and March 2007, FDI of $16 billion flowed to India.
VII. RELATED STATISTICS
Foreign currency reserves, gold, special drawing rights (SDRs), foreign investments as well as the Reserve Position in the Fund (RPF) are main components of the Gross International Reserves (GIR). The GIR constitutes the foreign assets valued mark-to-market, which are readily available to and controlled by the BSP for direct financing of payments imbalances and for managing the magnitude of such imbalances. The BSP estimates the level of Overseas Filipino Worker (OFW) remittances, which props up the country’s foreign currency reserves. (BSP