Domestic Bonds

BSP Praises Retail PH Dollar Bonds – Manila Bulletin


BSP welcomes retail PH dollar bonds

BSP welcomes retail PH dollar bonds

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno hopes the country’s first-ever Retail Dollar Bond (RDB) issue will encourage small investors such as overseas Filipinos to invest in titles.

Diokno said the RDBs would not only promote financial inclusion, but also provide a “special opportunity for small and medium-sized investors to earn and, at the same time, help finance the government’s stimulus and resilience programs.” RDBs have a minimum size of $ 300 as an investment.

“These funds (from the RDB issuance) will serve as an additional source for a stimulating fiscal policy which, together with the current accommodative monetary policy, will remain crucial to restore confidence and revive domestic demand,” he said. “Taken together, these initiatives will help the national government tackle the adverse effects of the pandemic through targeted fiscal interventions, which aim to boost market confidence and safely reopen more sectors of the economy,” said he added.

The Treasury Office sold $ 866.2 million worth of onshore RDB on September 15, more than the supply of $ 400 million amid strong demand. The product will be added to the government’s response to the pandemic.

Diokno said BSP initiatives have helped make investing in securities like RDBs much easier, including: regulations that have made the process of opening bank accounts easier; use of the Know-Your-Customer electronic verification process; liberalization of foreign exchange rules that facilitate transactions for banks, overseas Filipinos, small and medium-sized businesses and the general public; and the promotion of financial digitization.

Diokno said investors can buy RDBs through online banking apps and transfer funds to their bank accounts seamlessly through PESONet or InstaPay.