Monday, February 19, 2018

Interconnection Charge, RRR, Hot Money

1. Senate Bill 1636 or the Lifetime Cellphone Act
Senators proposed removal of interconnection fees charged by telecommunications firms for all calls and SMS messages.

Notes: It may reduce the burden for users to transfer to 3rd player. It might have the biggest effect for existing telcos, I think. On top of all the infra  and regulation related support from the government...

2. Reduced RRR (Reserve Requirement Rate) will further weaken Peso.

Notes: Higher estimated inflation(4.34%). More liquidity, TRAIN, Weak Peso...looks like money supply to the market will pick up....but how long?

3. NET hot money inflow in Jan 2018 was $162 million. Jan 2017 was $301 million and Dec 2017 was $457 million. 

Notes: At least it was not outflow.


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MARKET ISSUES

[last partial update : 02/28/2018] Macro and Overseas (a) US interest rate : 1.25 ~ 1.5%, May increase 3 times in 2018 (b) US 10 yr bond...