The experiences from the Covid-19 shock in March 2020 bore-out some of these concerns. Certain types of money market funds (MMFs) – those investing in private sector debt – experienced acute outflows. Moreover, funds with exposures to less liquid assets, or assets that became temporarily illiquid, were particularly susceptible to outflows.
•  We see our external payments dynamics continuing to be favorable, with ample international reserves, and current account surpluses driven by structural flows including OF remittances, BPO revenues, and tourism receipts. •  We see the banking system remaining well-capitalized and able to withstand significant external shocks that could result from global interest rate normalization.