Gov't selling $500M worth of dollar bonds onshore


Posted at Nov 13 2012 03:16 PM | Updated as of Nov 13 2012 11:16 PM

MANILA, Philippines - The government is selling another $500 million worth of bonds this month, in a move seen to create dollar demand and weaken the peso.

Newly appointed National Treasurer Rosalia de Leon says the sale should help mop up excess dollars in the domestic market, which she estimates at $28 billion.

The sale comes just a week after government successfully sold $750 million of global peso notes.

But the latest offer is denominated in dollars and will only be sold to local investors.

"Given the reserves and peso liquidity we have, we're tapping more the domestic resources and at the same time, we're able to coordinate with the central bank on managing onshore liquidity... Parang siphoning the dollar liquidity not the peso," she said. - ANC