Diokno calls on public not to panic about global geopolitics

Diokno said people were citing a surge in oil prices but for the government to make changes in their economic assumptions, oil prices, for one, need to hit USD90 per barrel. (PNA file photo by Oliver F. Marquez)

MANILA — Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno urged the public not to panic about the impact of the ongoing geopolitical developments overseas 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 at the sidelines of the Tuesday Club forum in Mandaluyong City.

Diokno said people were citing a surge in oil prices but for the government to make changes in their economic assumptions, oil prices, for one, need to hit USD90 per barrel.

He said Dubai crude oil prices to date are about USD60-70 per barrel.

Assumption of the inter-agency Development Budget Coordination Committee (DBCC) for Dubai crude oil prices for this year is between USD55-70 per barrel.

Diokno also said remittances are not expected to be hit hard as a result of the geopolitical concerns in Iran and Iraq since most of the overseas Filipino workers (OFWs) in the Middle East are deployed in Saudi Arabia.

On the months-long 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.