RP eyes new currency swap agreements

RP eyes new currency swap agreements

MANILA: The Philippine government is eyeing a currency swap
agreement with China and South Korea to boost its dollar reserves
as a precautionary measure against potential financial market
shocks.

"The trend is to have bilateral talks with as many countries
as we can...That's slowly being worked on," central bank Governor
Rafael Buenaventura told reporters when asked about media reports
of such negotiations.

Buenaventura said the arrangement with China was being
targeted at around US$3 billion, almost the same with the
government's swap deal with Japan made in July 2001.

Under the Japan deal, the central bank may borrow dollars in
exchange for the local currency to meet huge demand for dollars.

"It is a precautionary measure. The more you have, the less
likelihood of a contagion," Buenaventura said. --Reuters

India's forex reserves top $53b

BOMBAY: India's foreign exchange reserves jumped to US$53.317
billion in the week to March 22, largely due to foreign direct
investment inflows and remittances from expatriate Indians,
analysts and dealers said.

Data released by the Reserve Bank of India (RBI) on Saturday
showed foreign exchange reserves rose to the all-time high from
$52.189 billion a week ago. Reserves have now risen for 26
straight weeks.

"We saw a lot of foreign direct investments pouring in during
that week, most of which was mopped up by state-run banks," said
Sharukh Wadia, treasury head at IndusInd Bank.
pharmaceuticals sectors.

In 2002, India's foreign currency reserves have risen by about
11 percent, or around $5 billion, as foreign investments -- both
portfolio and direct -- poured into the country.

These capital inflows have been key to the higher surpluses in
the country's balance of payments position. --Reuters

Russia to lift ban on U.S. poultry

MOSCOW: Russia agreed on Sunday to lift a ban on poultry
imports from the United States next month, removing an irritant
in relations ahead of a May summit between presidents Vladimir
Putin and George W. Bush.

"We are really pleased to have defused the immediate crisis,"
U.S. ambassador Alexander Vershbow told a news briefing.

"With the visit of President Bush just two months away, we
need to start working to expand our areas of cooperation now that
this obstacle appears to have been removed."

Russia slapped the ban on imports of chicken and turkey,
citing concerns including salmonella contamination and the use of
antibiotics in feed. -- Reuters

Pakistan repays $4.5b foreign debt

KARACHI: Pakistan, buried under $37.8 billion of foreign debt,
said on Saturday it had repaid $4.5 billion of foreign debt in
last two and a half years and $1.4 of it billion was expensive
debt.

Finance Minister Shaukat Aziz told top business executives in
southern port city of Karachi the government was trying to reduce
the huge debt burden, which he called a "serious issue" for the
economy.

"During the period October 12, 1999 till March 26, 2002
Pakistan repaid $4.5 billion of loans ... of which $1.4 billion
was expensive, high interest rate debt," Aziz said marking the
period from when General Pervez Musharraf seized power in a
bloodless coup.

"In other words, 31 percent of the repayments amounted to
expensive debt," he said. -- Reuters

Bangladesh calls for regional cooperation

DHAKA: Bangladesh Finance Minister M. Saifur Rahman on
Saturday called for the resolving of bilateral disputes among
South Asian nations and the forging of cooperation to face global
competitiveness.

"If Bangladesh, Pakistan and India are in a quarrel, then how
could there be any effective cooperation?" Rahman told a meeting
of business leaders from SAARC countries.

The SAARC or South Asian Association for Regional Cooperation,
groups Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and
Sri Lanka.

Rahman said: "We must forge cooperation among the SAARC
countries in the field of trade and economy, otherwise we can not
survive the globalization process." -- Reuters