These FX indicators compare favorably with our counterparts in the Asia Pacific region. What are the implications of these external payments numbers? Madam Chair, the country’s favorable external payments position has mitigated the adverse effects of external shocks. The flexibility of the peso has been our first line of defense against the uncertainty and volatility of the global market.
What deposit growth that has been observed is, moreover, concentrated in the larger cities: presumably it has been helped by the high corporate profitability leading to high corporate cash balances. The trend therefore indicates that while banks may have been proactive in credit deployment, their focus on deposit mobilisation may have been less than adequate.