The Market Monitor Minding the Nation's Business
The Monetary Board approved the continued participation of the Philippines, through the Bangko Sentral ng Pilipinas (BSP), in the Financial Transactions Plan (FTP) of the International Monetary Fund (IMF) for the period August 2024 to January 2025.
This means that the country has maintained its net creditor position in the IMF which underscores the country’s sound macroeconomic fundamentals. The Philippines’ strong external position supports the country’s development goals which will be beneficial to the Filipino public.
The FTP is a currency exchange arrangement between the IMF and eligible members to facilitate the IMF’s lending operations with other member countries. The IMF pays interest, called remuneration, to the FTP participants like the Philippines.
In selecting members for inclusion in the FTP, the IMF considers the strength of the member’s balance of payments and reserve position, stability of the exchange and financial markets, as well as adequacy of country’s international reserve assets to ensure that the participating country will fulfill its obligations during the specified FTP period.
The Philippines first participated in the FTP in August 2010 in line with the Special Authority granted by the President of the Republic of the Philippines to the BSP.
Given that the country’s external position remains strong, with ample gross international reserves to withstand external shocks, the country has been assessed to be eligible for continued participation in the FTP.
This puts the Philippines in a favorable position to remain as a Fund financial partner, which is an indication of the country’s commitment to contribute to the global financial safety nets and support the resolution of possible crises.