Jump to content
  • Sign Up
×
×
  • Create New...

Economists reject claim Philippines gold reserves sale means it is ‘running out of money’


Pelican Press
 Share

Recommended Posts

  • Diamond Member

This is the hidden content, please

Economists ******* claim Philippines gold reserves ***** means it is ‘running out of money’

Screenshot of false post taken September 30, 2024" data-src="https://s.yimg.com/ny/api/res/1.2/Zxs2FKdFF78yL0piE4Db4w--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY1MA--/https://media.zenfs.com/en/afp_factcheck_us_713/ad5144656c338603707d1636c798d3a7">Screenshot of false post taken September 30, 2024

Relations between the Marcos and Duterte families have 

This is the hidden content, please
ahead of the 2025 midterm elections, with accusations of ***** ******, threats to split the country and rumours of a coup plot shattering their public facade of unity (
This is the hidden content, please
).

Panelo’s video was also reposted on

This is the hidden content, please
This is the hidden content, please
and
This is the hidden content, please
, while other known supporters of Duterte made similar claims questioning the ***** of gold reserves 
This is the hidden content, please
and
This is the hidden content, please
.

Social media users left a flurry of comments indicating they believed the central bank’s gold ***** was a sign of economic distress, while others alluded to the corrupt rule of Ferdinand Marcos Sr, the current president’s father.

An estimated $10 billion was stolen from state coffers over the course of Marcos Sr’s 20-year rule that left the country impoverished. 

“The Philippine is really in serious trouble,” one user said.

“Congress must investigate this,” another commented.

The posts have misrepresented the central bank’s gold sales, multiple experts told AFP.

‘Robust’ reserves

In a September 24

This is the hidden content, please
, the Bangko Sentral Ng Pilipinas (BSP) explained that it sold gold as part of an “active management strategy” of the country’s gold reserves (
This is the hidden content, please
).

It said the sales were made to “take advantage of the higher prices of gold in the market” and had generated additional income without compromising the central bank’s objectives of holding gold as a safety net.

Story continues

“Amid the gold sales, the country’s ****** International Reserves (GIR) has remained robust, with the end-August 2024 figure rising to US$107.9 billion from US$103.8 billion as of end-December 2023.”

Victor Abola, an economist at the University of Asia and the Pacific, told AFP on September 25 that the claim that the BSP’s ***** of gold indicated poor economic standing was “erroneous and misleading.”

Gold is only one component of the country’s total GIR alongside other assets such as foreign currencies, he explained.

When the central bank sells gold, it receives payment in the form of US dollars or other reserve currencies. The value of the country’s reserves ******** “basically unchanged”, Abola said.

The BSP earlier 

This is the hidden content, please
that by the end of August, the country’s reserves could cover 7.8 months of imports and were about six times the amount of short-term external debt (
This is the hidden content, please
). 

These figures are “good” and exceeds the typical threshold for reserve adequacy, according to financial analyst Jonathan Ravelas.

He told AFP on September 25 that the “rule of thumb” suggests countries should hold reserves covering 100 percent of short-term debt, or the equivalent of three months’ worth of imports. 

Ravelas also said gold was a volatile asset and “taking profits in an uptrending market is wise,” especially when market prices stood at all-time highs.

“There is no harm in taking profits. This is part of the strategy. The change is minimal and still focuses on building reserves,” he added.

In a

This is the hidden content, please
to its earlier article about the central bank’s gold sales, Esquire Philippines interviewed an economist who said the move was a “prudent investment decision” (
This is the hidden content, please
).

AFP has previously

This is the hidden content, please
claims about the Philippine central bank.



This is the hidden content, please

#Economists #******* #claim #Philippines #gold #reserves #***** #means #running #money

This is the hidden content, please

This is the hidden content, please

Link to comment
Share on other sites


Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.

Important Information

Privacy Notice: We utilize cookies to optimize your browsing experience and analyze website traffic. By consenting, you acknowledge and agree to our Cookie Policy, ensuring your privacy preferences are respected.