meantime, our external liquidity position has been robust. we have been running current account surpluses for 13 years now, allowing us to beef up fx reserves to an all - time high of us $ 85. 5 billion as of end - july 2016. all - told, ladies and gentlemen, the philippine economy continues to enjoy a position of relative strength. and this has not been unnoticed by global investors. we have had our share of surges in capital inflows in search of yield. and while, some of these have “ come and gone ”, a large portion of the inflows have stayed and remain invested in our domestic assets. but what i wish to emphasize this morning is that the philippines is a destination not only for flighty capital. the philippines is, more importantly, a destination for serious investment. i am able to say this with conviction because we do not only have a solid macroeconomic track bis central bankers ’ speeches record, we also have the institutions that are critical to sustaining such a strong economic performance. good institutions are indispensable for more than two decades now, we have been putting in place structural reforms that have liberalized key industries, including utilities, the power sector, and the banking system. we have adopted legislation aimed at improving governance in government corporations ( gcg ) and public procurement ( gppb ) ; as well as ensuring fair competition in industry and vital services ( pcc ). these reforms have helped raise the country ’ s total factor productivity ( tfp ) and are seen to help further reduce incremental capital output ratios ( icor ). these efforts complement the ongoing reforms to further improve “ ease in doing business ” and lessen “ frictions ” for investments in the philippine economy. in parallel, the bsp, in collaboration with market participants and other regulators, is continuing to roll out specific market reforms under our capital market reform agenda. the reforms which include, among others, developing a benchmark governance framework and creating a repo market should further deepen our domestic capital market and align its functioning with global standards. alongside these, the bsp has also put out banking regulations that will enhance corporate governance and credit and it risk management among banks, in tandem with the adoption of the other components of basel 3. furthermore just last month, the bsp embarked on a significant liberalization of foreign exchange rules. these measures aim to encourage the public to transact their fx needs more with banks by, among others, increasing the

##dging products that are already available. in this regard, i welcome the australian financial sector ’ s efforts to support the development of an rmb market here in sydney, in particular, by ensuring that the current and future rmb product needs of australian corporates are met, and that clients have ready access to information. another encouraging sign is the recent announcements by two chinese banks operating here in sydney regarding rmb clearing services. conclusion the internationalisation of the rmb – and china ’ s associated move towards a liberalised capital account and more flexible exchange rate regime – has the potential to create a seismic shift in the international monetary and financial landscape. and while china clearly has an interest in getting this process right, the rest of the world – including australia – also has a strong interest in the outcome. history teaches us that financial deregulation is an inherently risky process, but that there are substantial payoffs if it is done well. conferences like this are an important part of understanding this whole process and i wish you all the best in exploring the challenges and opportunities that lie ahead. for an overview of the results of this survey, see ballantyne a, m garner and m wright ( 2013 ), “ developments in renminbi internationalisation ”, rba bulletin, june, pp 65 – 74. bis central bankers ’ speeches