The Philippines will continue to issue local debt to reduce foreign currency risk and is mulling issuing a sukuk said Philippines Treasurer Roberto Tan on Tuesday, as the nation prepares for an election year at home and as the US prepares to hike interest rates.
The Philippines government has a relatively high but declining foreign currency exposure which leaves it vulnerable to volatile overseas financial markets.
The Treasury has improved the nation's debt structure in recent years mitigating currency and refinancing risks. The proportion of government debt denominated in foreign currency has fallen to 33% and the average maturity has lengthened to around 10 years from...
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