Emerging Markets Rates and Currencies Handbook

Philippines (PHP - Philippines Peso) Citi in Philippines Citi’s history in the Philippines dates back to July 1902, when the International Banking Corporation, forerunner of Citibank, first established a branch in Manila. With over 120 years in the Philippines, Citi Philippines is the largest foreign bank in the country in terms of asset base. With over 7,000 employees, Citi proudly serves the public sector, top-tier local corporates, multinationals and financial institutions through its Institutional Clients Group. Citi Philippines serves its corporate clients through its Institutional Clients Group which operates across three different areas: Banking, Markets and Services. These businesses work together to provide innovative solutions to meet the complex needs of corporations, financial institutions, public sector entities and investment managers. A pioneer in business process outsourcing, Citi is home to a growing hub of Citi Solutions Center (CSC) that provide voice and non-voice services to Citi affiliates, subsidiaries, and branches in Asia Pacific, Europe, Middle East and Africa, North America and Latin America regions. Market Overview The Bangko Sentral ng Pilipinas (BSP) is the central bank of the Republic of the Philippines. Per the BSP website (https:/ /www.bsp.gov.ph/SitePages/Default.aspx), t he country’s exchange rate policy supports a freely floating exchange rate system whereby the BSP leaves the determination of the exchange rate to market forces. Under a market-determined exchange rate framework, the BSP does not set the foreign exchange rate but instead allows the value of the PHP to be determined by the supply of and demand for foreign exchange. Thus, the BSP’s participation in the foreign exchange market is limited to tempering sharp fluctuations in the exchange rate. On such occasions of excessive movements, the BSP enters the market mainly to maintain order and stability. When warranted, the BSP also stands ready to provide some liquidity and ensure 39