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1. The Filipino balance of payments is not in the standard form as we discussed in class. Convert the BOP into the standard form. Filipino Blalance of Payments (in million USS) 03 2017 2018 Current Account Capital Account Financial Account Errors and Omissions Official Reserves Overall BOP 0 0 Note: at the end of the exercise, please provide your converted BOP and write the student names in your group to receive credits. 2. Based on the BOP, what is your prediction of Philippine peso: appreciating or depreciating? How would you have traded the peso and dollar based on your prediction? Find out the current exchange rate between Philippine peso and US dollar using your laptop or cellphone. 3. Given the exchange rate in the table, what is the percentage gain/loss if you had traded the two currencies based on your prediction? 4.
BALANCE OF PAYMENTS DEVELOPMENTS Third Quarter 2018 Developments Overall BOP Position 03 2018 BOP The countrys balance of payments position (BOP) registered a higher position registers deficit of US$1.9 billion in Q3 2018 compared to the US$662 million higher deficit. deficit recorded in the same quarter a year ago. This development was primarily due to the deficit in the current account, which was a result of the continued widening of the trade-in-goods deficit and the lower net receipts of services and secondary income. The increase in the primary income account tempered the rise in the current account deficit. The sustained expansion in imports of goods was driven by the strong growth of domestic economic activity propelled by the governments big infrastructure projects. Meanwhile, the financial account recorded net inflows (or net borrowing by residents from the rest of the world), a reversal from the net outflows posted in the same quarter a year ago. Net inflows of direct investments remained robust on the back of countrys solid macroeconomic fundamentals. Net inflows were likewise posted in the portfolio and other investment accounts during the quarter as investor sentiment and global growth prospects remained positive. Balance of Payments ( in million USS) 2017 2018 Current Account Capital Account Financial Account Net Unclassified Items 1100 -2907 18 1335 -1975 445 -945 Overall BOp* 662 -1879 Positive balance in the financial account indicates net outflows while a negative balance indicates net inflows. The overall BOP position, therefore, is equal to the current account plus the capital account minus the financial account plus net unclassified items. Current Account Current account The current account registered a deficit of US$2.9 billion in Q3 2018, a to a reversal from a us$1.1 billion surplus posted in the same quarter last deficit. year. This development stemmed mainly from the widening deficit in the trade-in-goods account. Lower net receipts in the trade-in-services and secondary income accounts also contributed to the current account deficit, which were partly offset by the higher net receipts in the primary income account during the quarter. Primary Income account (formerly the Income account) shows the fo
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Answer #1

2. By looking into the numbers, we can assume that the Peso value is increased than US Dollar during 2017 compared with 2018.

3. The present value of Philippine peso to US Dollar is= 0.019 to One dollar (Source: www.x-rates.com)

4. currenp Accoune cap to Accouuf Financia AccounP 20汗 1100 8 1335 ays -662

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