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The Bangko Sentral ng Pilipinas said Tuesday it is closely watching the situation in Qatar and the rest of the Middle East and its possible impact on remittance flows to the Philippines.
“The situation is just unfolding so we don’t know yet the extent and coverage. I think at this time, it is best to monitor the situation,” incoming BSP Governor Nestor Espenilla Jr. said at the sidelines of an event at Bangko Sentral.
The Labor Department on Tuesday suspended the deployment of Filipino workers to Qatar a day after a number of nations, including Saudi Arabia and Egypt, severed ties with Qatar and accused it of lending support to extremism.
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Qatar is the third largest source of remittances in the Middle East, after Saudi Arabia and the United Arab Emirates. Remittances from Qatar reached $1.059 billion in 2016 and $306 million in the first quarter this year, up 35 percent from a year ago.
Over 200,000 Filipinos areworking in Qatar, unofficial data show.
The Philippine Chamber of Commerce and Industry said it was not worried about the impact of the Arab Gulf’s issue on Philippine trade. PCCI president George Barcelon said any such impact should be minimal.
“On trade, our export is not substantial to have much effect,” Barcelon said.
“It’s a regional geo-political issue where Qatar has been ostracized. Qatar is part of the Organization of Petroleum Exporting Countries, but treated this manner, it could destabilize the oil solidarity and affect oil price downward,” Barcelon said.
The Trade Department was supposed to facilitate $1 billion worth of sovereign fund from Qatar for developmental projects such as agriculture and infrastructure projects.
Espenilla said it was too early to tell the impact of the Middle East row on remittances. “We don’t know yet what is the extent and there could be alternative channels. There were previous incidents, let us say in the Middle East including the all-out war and this did not significantly impede the flow of remittances. So it is very premature to draw any conclusion to a news that is just unfolding,” Espenilla said.
He said the deployment of overseas Filipinos was pretty diverse all over the world and not just concentrated on one region. “Any disturbance is a source of concern by the BSP especially since there are overseas Filipinos working there. That is why it is important to monitor the situation at this time,” he said.
He also said the price of oil would depend “on how international prices will react to it [Qatar situation].” He said in fact, early reports showed oil prices did not move.
“We should look at a longer term perspective so it is too soon to draw anything from this but, it bears close watch,” Espenilla said.
The Philippine Embassy in Qatar earlier told Filipino workers based in the Arab nation to remain calm and “exercise prudence as we all closely monitor the situation.”
Filipino workers were also advised to consult their travel agents and make necessary arrangements after Etihad Airways, Emirates Airlines and other regional carriers suspended flights to and from Qatar.
