MANILA — Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla Jr. on Thursday said there is nothing unusual about the reduction of volume offering for two tenors of the Term Deposit Facility (TDF) up for the auction on April 25, 2018.
This, after the central bank announced Wednesday that next week’s offering for the seven-day facility will only be for Php40 billion instead of Php50 billion such as the case this week. Offering for the 14-day TDF was cut to Php30 billion, down from Php40 billion this week.
On the other hand, offering for the 28-day facility was kept at Php20 billion. Espenilla, in a WhatsApp message to journalists, said the cut in the TDF offering for two tenors in next week’s auction is only “temporary.”
“(The cut was made) because of upcoming holidays. Then back to usual,” he said. The central bank chief was referring to the Labor Day holiday on May 1 and the barangay (village) and Sangguniang Kabataaan (Youth Council) elections on May 14.
Monetary officials have repeatedly said that adjustments in the TDF offering volume depends on their outlook for liquidity in the coming weeks. In the past, TDF volume offering has been reduced because of expected demand for liquidity by banks’ clients such as during the Christmas season.(Joann Villanueva/PNA)
