the government ’ s target range of 3. 0 percent ± 1. 0 percentage point for the year. looking ahead, inflation is projected to average 2. 9 % for both 2020 and 2021. the country ’ s balance of payment ( bop ) position recently made a turnaround from a deficit in 2018 to a surplus of us $ 7. 84 billion in 2019. the surplus in the bop may be attributed partly to higher net inflows of foreign direct investments and foreign portfolio investments, bolstered by favorable investor sentiment on the country ’ s solid macroeconomic fundamentals. the peso has been broadly stable, appreciating by about 4 % in 2019. 1 / 4 bis central bankers'speeches the end 2019 level of the gross international reserves at $ 87. 8 billion is the highest ever. more importantly, our growth continues to be inclusive. poverty incidence among the population declined to 16. 6 % in 2018 from 23. 3 % in 2015, exhibiting a 2. 2 % decrease in poverty incidence annually. this means that nearly six million filipinos were lifted out of poverty during that period. as of october 2019, unemployment and underemployment rates in the country are both at a historic low of 4. 5 percent and 13. 0 percent, respectively. indeed, 2019 was a very good year for our country. the bsp ’ s core mandates on our part, we at the bsp will continue to effectively implement our mandates and policy priorities to support the country ’ s growth goals. we will remain firmly committed to maintaining price stability and financial stability, and ensuring an efficient payments and settlements system. with the passage of republic act no. 11211, which amended the ‘ new central bank act ’ or the bsp charter, we will continue to enhance our policy responsiveness since the law strengthened bsp ’ s pursuit of its mandates by expanding its policy toolkit. our policy and reform agenda also include further strategic, complementary and reinforcing efforts in developing deeper money, debt, and fx markets. these will help build the country ’ s resilience against external shocks by reducing its reliance on external funding. at the same time, we are pursuing initiatives to deepen the local debt market and the issuance of enhanced guidelines on valuation of peso - denominated government securities as well as enhanced rules on bond issuances. these initiatives will go a long way in funding infrastructure projects under the national government ’ s build, build, build program and other big

efforts are on track. account ownership has almost doubled in two years [ from 2019 to 2021 ], as shown by the picture on the left. that means 22 million filipinos opened an account in 2021. this is the highest growth to date for the country. we would like it to go to 70 percent by the end of this year. on the right, you will see the percentage of filipino grown - ups with e - money accounts. that has breached 36 percent in 2021. this trend is a big jump in the percentage of filipinos with e - money accounts. the payment that we use in shops and stores is increasingly digital. in 2022, the share of digital payment transactions to the total volume of retail payments rose to 42 percent, and we are trying to hit our target of 50 percent by the end of this year. let me say something about our strategies for sustainability. we want to strengthen our programs for sustainability, but we want sustainability with a heart. as a nation, we signed the paris agreement in 2015. this means we are committed to the global initiative of net zero carbon emissions by 2025, and nationally, our determined contributions are to reduce greenhouse gas emissions by 75 percent by 2030. for its part, the bsp champions sustainability in the financial system. we also want sustainability not at the expense of the poor. when we do sustainability, we want to emphasize small - scale strategies, including electric tricycles, pay - as - you - go solar, and other small - scale projects. that is where we stand. we will continue to emphasize our three pillars : price stability, financial stability, and an efficient and safe payments and settlements system. maraming salamat po. agyamanak kadakayo amin. thank you. 4 / 4 bis - central bankers'speeches