|
Thursday, November 03, 2005
OFW remittances, RVAT increase value of peso
MANILA - Cash transfers by the country’s huge overseas work force and the long-awaited implementation of a key consumption tax pushed the peso to a near five-month high against the dollar yesterday, dealers said.
At the midday break, the peso averaged 54.829 to the greenback after trading between 54.740 and 54.96.
EVAT
Dealers said there was slack demand for dollars.
“It’s bad news for consumers, but the RVAT (Reformed Value-Added Tax) implementation should be viewed positively as it will ensure long-term fiscal stability for the government,” a dealer at a local commercial bank said.
Optimism that the government may be on its way to reducing its massive budget deficit with the expanded sales tax—which now also covers politically-sensitive products like oil and electricity—was evident in both the equity and foreign exchange markets here.
The stock market’s composite index surged past 2,000 points in late trade, gaining 2.37 percent to a three-month high.
Remittances
Dealers said the RVAT is already priced in at current peso levels, adding that the local currency’s movement in the afternoon session will be largely dictated by demand for dollars and any fresh inflows.
Dealers said the peso was also boosted by the seasonal spike in remittances by overseas Filipino workers ahead of Christmas and the Bangko Sentral’s previous action of raising key interest rates to their highest levels in three years. (AFP)
(November 3, 2005 issue)
Write letter to the editor. Click here.
Join the Sun.Star message board. Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
