MACROECONOMICS WEEKLY UPDATE

The Bangko Sentral ng Pilipinas (BSP) is expected to maintain high interest rates due to potential inflation spikes, driven by risks such as increased transport fares, power rates, and oil prices. BSP has initiated the soft launch of the International Transactions Reporting System (ITRS) to monitor cross-border transactions and enhance foreign exchange transaction supervision. Meanwhile, the government raised P19 billion in Treasury bills amid rising demand, indicating expectations that the BSP will keep borrowing costs elevated. The average rates for the 91-day and 182-day T-bills were 5.102% and 5.582%, respectively.

The BSP launched the International Transactions Reporting System (ITRS), requiring Philippine banks to submit transaction reports between residents and nonresidents. The system, set for full implementation on June 28, collects data on currency transactions, monitors cross-border activities, and facilitates supervision of foreign exchange transactions, aligning with international standards for balance of payment statistics.

INDUSTRY UPDATE

PHARMACUTICALS 

Zuellig Pharma is now the exclusive distributor for German-based STADA’s pharmaceutical products in the Philippines. This collaboration aims to improve access to STADA’s OTC and consumer brands, along with prescription medicines, especially in ophthalmology. STADA, with approximately 20 production sites primarily in Europe, focuses on therapeutic areas like dermatology, nephrology, ophthalmology, rheumatology, and Parkinson’s disease. Zuellig Pharma’s Managing Director for the Philippines, Jannette A. Jakosalem, expressed confidence in meeting the healthcare needs of the population through their established presence and capabilities in the country.

FINANCIAL & PROPERTY 

Zuellig Pharma is now the exclusive distributor for German-based STADA’s pharmaceutical products in the Philippines. This collaboration aims to improve access to STADA’s OTC and consumer brands, along with prescription medicines, especially in ophthalmology. STADA, with approximately 20 production sites primarily in Europe, focuses on therapeutic areas like dermatology, nephrology, ophthalmology, rheumatology, and Parkinson’s disease. Zuellig Pharma’s Managing Director for the Philippines, Jannette A. Jakosalem, expressed confidence in meeting the healthcare needs of the population through their established presence and capabilities in the country.

STOCK EXCHANGE 

The Philippine Stock Exchange (PSE) faced criticism for a two-hour trading halt on January 3, caused by a glitch in its mobile trading application affecting a third of participants. The PSE attributed the issue to a stalled process in one of the system silos during authentication steps. Analysts emphasize the importance of prompt disclosure of trading halt causes for maintaining confidence in local financial markets. The PSE, along with the system developer, is implementing design optimizations and enhancements to prevent a recurrence of the problem.