THE Bangko Sentral ng Pilipinas (BSP) lauded the National Government’s first-ever issuance of retail dollar bonds (RDBs).
The BSP said the issuance is expected to provide investment opportunities to small investors like overseas Filipinos and will eventually provide “various benefits for the economy.”
“[RDBs] provide a special opportunity for small and mid-sized investors to earn and, at the same time, help fund the government’s recovery and resiliency programs,” BSP Governor Benjamin E. Diokno said.
“[RDBs] could be particularly attractive to our overseas Filipinos who have funds to invest. This bodes well for them and their families,” he added.
Last September 15, the Bureau of the Treasury (BTr) sold a total of $866.2 million worth of onshore RDBs from the maiden issuance—more than twice the originally programmed USD 400 million—amid high demand. Proceeds are expected to help augment the government’s resources for pandemic response.
RDBs are accessible to small investors, as these require a minimum investment of only $300.
“These funds [from RDB issuance] will serve as additional source for stimulative fiscal policy which, together with the current accommodative monetary policy, will remain crucial in restoring confidence and reviving domestic demand,” the governor said.
“Taken together, these initiatives will help the national government fight the adverse effects of the pandemic through targeted fiscal interventions, which are aimed at boosting market confidence and safely reopening more sectors of the economy,” he added.
The BSP chief also said various BSP initiatives implemented over the years have helped make investing in securities like RDBs much easier.
He cited regulations that eased the process of opening bank accounts, such as the use of electronic Know-Your-Customer verification process; liberalization of foreign exchange rules that facilitate transactions of banks, overseas Filipinos, small- and medium-sized enterprises, and the general public; and promotion of financial digitalization.