In recent years, the economic development of the Philippines has been remarkable. The primary driver of its rapid economic growth stems from a sharp increase in domestic and foreign investment. The massive influx of foreign capital has made the Philippines the second fastest-growing economy in Asia. China and the Philippines have a long history of economic and trade exchanges, and have consistently maintained a positive momentum in economic and trade cooperation. The Philippine immigration program, with its low-threshold advantage, has attracted numerous investment immigrants to settle in the country, leading to a rapid increase in foreign exchange deposits in the Philippines. On December 2, the Central Bank of the Philippines announced it is considering increasing its holdings of RMB assets.
The Central Bank of the Philippines stated on December 2 that after the International Monetary Fund (IMF) included the Chinese RMB in its reserve currency basket, the Central Bank of the Philippines is considering increasing its holdings of RMB assets to diversify its foreign exchange reserves.
Central Bank Governor Amando Tetangco Jr. stated that policymakers are also considering purchasing more RMB-denominated bonds, including longer-term bonds, as they have now become available for purchase.