Lance Baron R.

Salangsang BSA-2B

THE CURRENT STATUS OF THE PHILIPPINE FINANCIAL MARKETS

Coronavirus Pandemic vastly affected the economy of our country mostly because
people suffered financial constraints due to lockdown which happened last March 2020 and
even up to this day there’s still a lockdown especially to those places where the number of
positive cases is high. Financial market relies on people and businesses on acquiring funds
from people who wants to save money and from those funds they would lend it to those
people who wants to borrow money for whatever reasons they have.

According to Lema & Westbrook (2020), our country exempted the financial trading
platforms which involves the financial markets from strict coronavirus quarantine
procedures on March 17, 2020 paving the way for continuance of trading at its stock, bond
and foreign exchange markets this week, government officials said. It was close on Tuesday
due to the outbreak becoming the Philippines the first country to close its financial market
but according to PSE or Philippine Stock Exchange it will resume on Thursday. It shows
that even if there’s a pandemic in our country the financial trading platforms are still open
and available but a protocol should be followed especially if your going to that places.

Pandemic seems to show that the financial markets are affected especially the time
where people are unemployed because of the lockdown but According to BSP Governor
Benjamin Diokno (2020), "COVID-19 certainly caused so much damage, but our reading of
market conditions is that our financial market remains to be strong. The movement that we
have seen... are reactions to changes in risk aversion, rather than structural weaknesses. It
goes to show that the people are just reluctant to save or borrow money from the financial
market mainly because of the pandemic but based on April edition of Financial Stability
Report there are no signs that the financial market is in peril or in danger. He also added
that they will ensure that these difficulties do not cause harm in our financial markets that
would trigger a negative effect in our economy. With this kind of information coming from
legit authorities it seems like our financial market is in good shape and it helps to sustain
the economy of our country.

In conclusion, the current status of the Philippine Financial Market is in good shape,
not that good as what it used to be but considering there’s an outbreak in our country is
seems like lots of people and businesses are still willing to save and borrow money in the
financial markets. Also, it goes to show that Bangko Sentral ng Pilipinas are taking double
efforts by doing things that is fitted in our current situation right now, in order to ensure
that our financial markets won’t be in danger that would help the country’s economy to
bring positive impact in our society.

Retrieved from

https://www.reuters.com/article/us-health-coronavirus-philippines-market-idUSKBN21400V

https://cnnphilippines.com/business/2020/6/23/PH-financial-markets-strong-pandemic.html

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