I don’t know whether to laugh or to cry at this statement. The logic and relevance of this I cannot follow with respect to good governance.

We are closer to becoming a failed state than a successful one. Our neighbors including Vietnam are better placed to becoming successful states.

don’t i know it.

it’s there, staring us in the face!

btw, me tumawag na ba ng exorcist?
bad trip kasi ako sa mga multo.

Banks are now allowed to keep dollars as part of their own stock.

But of course. There are so many transactions that they need to have their own stock of dollars. travellers checque, dollar withdrawals, bank to bank remittances in dollars.

It is not like depositing their dollars with the BSP and withdrawing them when needed.

Banks are only required to keep a minimum reserve requirement for the total
transactions conducted everyday which they deposit with the BSP. The provincial banks which cannot do so are required to keep them in their vault or with other banks.

When audited the banks are fined a certain percentage of the amount that they should have maintained as a way of protecting the bank clients that the banks are not overwithdrawn.

The account in the BSP of marginal deposits are not BSP’s because you do not import thru BSP but with the commercial banks.

This is some kind of monitoring of the dollar movements. Otherwise, those which are not reported and are remitted abroad are what you call cases of money laundering.

Banks are now allowed to keep dollars as part of their own stock.

But of course. There are so many transactions that they need to have their own stock of dollars. travellers checque, dollar withdrawals, bank to bank remittances in dollars.

It is not like depositing their dollars with the BSP and withdrawing them when needed.

Banks are only required to keep a minimum reserve requirement for the total
transactions conducted everyday which they deposit with the BSP. The provincial banks which cannot do so are required to keep them in their vault or with other banks.

When audited the banks are fined a certain percentage of the amount that they should have maintained as a way of protecting the bank clients that the banks are not overwithdrawn.

The account in the BSP of marginal deposits are not BSP’s because you do not import thru BSP but with the commercial banks.

This is some kind of monitoring of the dollar movements. Otherwise, those which are not reported and are remitted abroad are what you call cases of money laundering.

Families of OFW’s and exporters do not have to exchange their dollars with the banks any more. They can maintain their own dollar accounts or if they wish they can exchange them for pesos and sell them to anyone they wish.

True, that has been going on ever since. During the time of Marcos, if you withdraw fron your dollar accounts, you will be penalized.

When I say the OFWs and their families exchange their dollars, they do, because they have to spend it pesos anyway.

Whether the money is exchanged in the banks or in the other money exchangers, it is still accounted for in the banking system.

Even the remittances of OFWs who send door to door are fully accounted for in the banking system thru the remittance companies which are often owned by banks.

Families of OFW’s and exporters do not have to exchange their dollars with the banks any more. They can maintain their own dollar accounts or if they wish they can exchange them for pesos and sell them to anyone they wish.

That is what a liberalized current and capital account means. Private interests decide on what they want to do with their dollar or forex earnings.

Banks are now allowed to keep dollars as part of their own stock. If they need dollars to make payments they buy dollars from the trading floor of the BAP… Banks with excess from their own reserves or their clients sell dollars on the floor of the BAP forex exchange.

The BSP simply stands by and smoothens out the volatility in the markets to temper surges in the forex rates either way.

It is amazing that at this day and age so many preconceptions about the forex markets still persist in the country.

A congressman driving himself would have to deal with finding a parking space at his destination, which is difficult nowadays. The time consumed for such activities is time taken off from time that could be productive. While driving, the congressman has to concentrate on piloting his vehicle, but if he has a driver, he can use the time riding as a passenger to read materials pertaining to his meeting.

This is correct. When I was in the Philippines, when parking buildings are still few, I had also a driver to attend meetings in Makati and other Metromanila areas where parking was a nightmare. The driver lets me get off close to the building where I was going, he leaves me to park the car somewhere and waits for my beep or call.

People do not realize that we are paying the solons or the managers in private firms not for their skills to type,(thus there is a need of staff, silly) to drive or to research. We are paying then to think and decide.

I may be wrong with increasing employment due to spending of OFW families. But employment should be the result with good governance and transparency. I was leaning towards the positive side on macro level but ignore the consequence of income inequality…

Ano raw?

The OFWs spending does not create employment directly. The spending may boost production of some goods because of the demand created and the need to supply.

If the OFW decides to go into business and hire employees, then employment is generated. But the question, how big is the business that it would create employment. Usually the OFWs embarked on cottage industries which required families as employees which may only number around one or more but not significant to be called employment generation.

They do not get even paid like regular employees. Thus their incomes are not coounted for in the GDP. GDP becomes understated.