proud of. in fact, 2007 was a banner year for the bangko sentral as we were able to tame inflation to 2. 8 %, the lowest in 21 years, even as high global oil prices were hitting record high levels. that we achieved this low rate of inflation rate as the economy posted its best growth rate in three decades made for an ideal convergence of high growth and low inflation. we also ended 2007 with record high gross international reserves, balance of payments surplus, higher foreign investments, and a strong peso that emerged as one of asia ’ s top performing currencies. and even as a strong peso had an adverse effect on our income last year, we remain financially strong and solid. our capital base is now roughly 15 times the p10 billion we started out with 15 years ago. thus, while imported inflation from record high food and oil prices has started to affect local prices this year, we are still able to anchor expectations. we are take pride in the fact that we were able to nurture our banking system back to health from the depths of the asian financial crisis without the massive government bailouts that other countries in the region resorted to. our solution : to improve the quality of supervision and implement far - reaching structural reforms in cooperation with the executive and legislative branches of government. today, bank profits are better and capital base deeper, while npa and npl ratios are nearly back at pre - crisis levels. as a result, our banking sector is recognized as strong and able to withstand the fallout from the global financial turmoil. furthermore, banks are consolidating into stronger institutions even as their delivery of banking services and new financial products now extend well beyond urban centers and deep into the countryside and islands. a stable, secure and efficient payments and settlements system is another source of pride for us. in addition, we are happy that our advocacy in sustainable microfinance has energized smaller banks, especially rural banks, into bringing in more people within the banking system, not just for a working capital loan, but also for deposits and remittances. in fact, we are leading the way for central banks in product innovation for microfinance and garnering international recognition for it in the process. we have also made much progress in broadening available alternatives for overseas filipinos in sending remittances to their beneficiaries. greater competition has led to lower remittance cost, better accessibility, quicker delivery, and generally better services that

benjamin e diokno : opening remarks - tuesday club press event opening remarks by mr benjamin e diokno, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the tuesday club press event, 4 january 2021. * * * good morning, officers and members of the tuesday club! it has become a tradition for us at the bangko sentral ng pilipinas to spend our first tuesday of the year with you. 2020 was an extraordinary year because of the covid - 19 pandemic which, by the way, is more than a health crisis, as the country also felt its debilitating impact on lives, livelihoods, and inequality. but this once - in - a - lifetime crisis, it is unlike other crises we have faced in the past. previous economic crises in the philippines had always been accompanied by rising interest rates and a weakening peso. the central bank of the philippines — the bsp ’ s predecessor — deliberately raised interest rates to contain peso depreciation and control inflation. but it was different this time for two main reasons. first, the philippines was in a position of strength when the pandemic hit us. the philippines ’ s strong macroeconomic fundamentals prior to the pandemic — manageable inflation, a strong and resilient banking system, a prudent fiscal position, and a hefty level of gross international reserves — cushioned the economy from the impact of the crisis. second, the bsp was among the central banks in the world that immediately responded to the crisis by deploying a set of comprehensive measures. the monetary board cut the policy rate by 200 basis points and the reserve requirement by another 200 basis points. as a result of this bold, timely, and decisive action, the country ’ s interest rates hit a historic low. to calm the market and inject liquidity into the system, we also adopted a wide range of measures that deployed almost two trillion pesos, equivalent to about 10 percent of the 2019 gdp. the peso appreciated by approximately 5. 67 percent — from p50. 74 to the us dollar as of end 2019 to its current rate at p48. 021. as of end november 2020, the country ’ s gross international reserves, or gir, hit an all - time high of us $ 105 billion, which is three times the import requirements of the country. in addition, the peso was supported