In the Philippines, the BSP had to put in place our own policy package (that includes the build up of reserves, prepayment of external debt and the liberalization of the foreign exchange system) to contain the impact on the peso of the strong foreign exchange inflows into the country.
A further challenge from the global front is the elevated price of oil and other non-oil commodities. Several market analysts share the belief that inflation this year would be higher than in 2007, primarily because of volatilities in global commodity prices due to supply constraints.