Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno urged the public not to panic regarding the impact of the ongoing geopolitical developments abroad on remittances and oil prices.
“Okay. What I can say is let’s not be alarmist here. Let’s not be alarmist,” he told journalists on Tuesday.
Diokno said people were citing a surge in oil prices but for the government to make changes in their economic decisions, oil prices, for one, need to hit USD90 per barrel.
He mentioned that Dubai crude oil prices to date are about USD60-70 per barrel.
Presumption of the inter-agency Development Budget Coordination Committee (DBCC) for Dubai crude oil prices for this year is around USD55-70 per barrel.
Diokno also said remittances are not expected to be hit hard as a result of the tensions in Iran and Iraq since most of the overseas Filipino workers (OFWs) in the Middle East are in Saudi Arabia.
Regarding security concerns in Hong Kong, the central bank chief added OFWs continue to remain safe.
BSP data show that cash remittances as of end-October 2019 rose by 4.6 percent year-on-year to USD24.858 billion.
Economists forecast remittance growth this year to remain strong and post similar growth as last year.