Philippines prepared for geopolitical risks, shifting economic landscape, DOF chief says

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THE Philippine economy can weather the impact of current geopolitical events and post-pandemic changes in the international financial system, as Finance Secretary Benjamin Diokno stresses the importance of heightened attention to these issues.

“Amidst the ever-changing and challenging economic landscape, I am confident that the [Bangko Sentral ng Pilipinas (BSP)] will continuously sharpen its tool kit, search for opportunities, and implement game-changing reforms and regulations to maintain the stability of our financial system,” said Diokno.

Diokno recognized the central bank’s competence to respond to economic events.

Diokno was BSP governor from 2019-2022 before assuming the role of finance chief.

“Given my recent stint as BSP governor for the past three years, I am well aware that the men and women of the BSP are very capable in responding where it matters and when it matters,” said Secretary Diokno.

Professor Thorsten Beck of Financial Stability at the Robert Schuman Centre for Advanced Studies, European University Institute raised issues on the rise in fintech companies and the greening of the financial system.

He identified geopolitical risks that may impact economies, including, among others, the ongoing Russia-Ukraine conflict, withdrawal of European banks from Russia, demand-driven global energy crisis, tightening of the US monetary policy, cross-border banking, and China’s role as creditor for fragile emerging markets and developing economies.

Diokno said these issues have important effects not only for the central bank and the financial system but also for the entire economy.

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