MANILA, Philippines – The peso exchange rate stands at P43.555 to the US dollar, the closing rate on Tuesday at the Philippine Dealing & Exchange Corp. (PDEx). The weighted average rate stands at P43.709.

LIQUIDITY (M3) UP 7.7% IN OCT. TO P4 TRILLION

The country’s broadest measure of money supply, or M3, reached P4.0 trillion in October, a 7.7% expansion from a year earlier, the central bank said yesterday.

The growth was slower than the 10.5% increase registered in September.

The increase in domestic liquidity was attributed to a 10.2% growth in net foreign assets, which slowed from the 12.8% rise in September. Net foreign assets in October rose mainly due to stronger inflows from overseas Filipino workers, portfolio investments and export earnings, the central bank said.

Net domestic asset growth also decelerated to 1.6% in October compared with 5.1% in the month earlier.

Despite the slower growth, liquidity remains adequate to support the funding requirements of the country's economic expansion, Bangko Sentral ng Pilipinas Governor Amando Tetangco said in a statement.

M3 comprises currency in circulation, bank deposits and other deposit substitutes. (Dow Jones)

AIRASIA CONFIRMS PH J.V. PLANS

KUALA LUMPUR (Dow Jones) – Malaysian low-cost carrier AirAsia Bhd. plans to set up a joint-venture company in the Philippines as part of its move to expand into North Asia, a person familiar with the matter said Wednesday.

"AirAsia hopes to sign the deal next week," the person said, adding that the deal will be with Antonio Cojuangco, a former chairman of Philippine Long Distance Telephone Co.

The person said AirAsia will likely take a 40% stake in the joint-venture, the maximum allowed under Philippine rules. He declined to elaborate.

Apart from Malaysia, AirAsia also has operations in Indonesia and Thailand.

CUSTOMS LIKELY TO MISS DECEMBER COLLECTION TARGET

The Bureau of Customs said that it will likely miss this month's tax collection goal of roughly P26 billion due to the scrapping of tariffs on oil, wheat and cement products.

Customs Commissioner Angelito A. Alvarez told reporters in an interview that with the December collection performance, the full-year tax take of government's second biggest revenue agency will be likely below the target by 5 percent.

The December collection target for Customs this year is 38 percent higher compared with the actual P18.8 billion collection in the same month in 2009.

This year, Customs is tasked to collect P280.7 billion, higher by 27 percent compared with P220.3 billion in 2009. (CSL)