| With record-high gross international reserves (GIR) of $81.9 billion as of end September, analysts opine that the Philippines has become a prime candidate for setting up a sovereign wealth fund (SWF). The Philippines’ sizable foreign exchange reserves, however, puts pressure on the peso to appreciate.
If the peso were to appreciate even more, it could potentially have an adverse effect on key industries like outsourcing and manufacturing, eroding competitiveness against cheaper alternative hubs like India. Some analysts argue that adopting an SWF and investing these funds abroad could help ease pressure on the currency to appreciate...............................................Full Article: Source
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