the financial, social and economic well - being of those who are otherwise “ excluded ”. the same supervisory principles as those in the mainstream market continue to apply but the execution allows for the proportionate application of regulatory requirements. in this way, we provide for flexibilities in policy aspects where rigidities would deter the creation of markets. this is precisely what we have done in the philippines. to - date, we have crafted 20 regulatory issuances specific to the financial inclusion framework. these 20 fall under 5 key aspects : 1. wider range of products ; bis central bankers ’ speeches 2. expanded physical network ; 3. extended virtual reach ; 4. enhanced transparency and disclosure ; 5. lower barriers to customer acquisition 1 we believe these ensure effective implementation of financial inclusion. in providing for a wider range of products, for example, we recognize that the financial service needs are quite varied. toward this end, the bsp has recognized credit facilities of up to php300, 000 for such instruments as micro - enterprise loans, micro - agri loans and, housing microfinance loans. to make this micro ecosystem thriving, we complement the credit facilities with needed auxiliary products such as micro - deposits and micro - insurance product lines. the combination of all these product lines allows for a free flow of funds within an environment that is specifically structured for small - ticket item transactions. we recognize that access is a major concern, particularly with 37 % of municipalities not having a banking office. to address this, we introduced the concept of microfinance banking office ( mbo ). mbos are operationally attached to a full - service branch but can be established in hard - to - reach areas. on their own, they serve as a launch pad for a range of product lines from loans, to savings, remittances, to e - money conversion, bills payment, pay out services and even foreign exchange purchases on a limited basis. mbos are separate from the electronic money ecosystem which we introduced a couple of years ago. using technology that is readily accessible by the retail market, we are able to bridge the physical gaps in banking with a technology - driven network. this covers several facets including fund transfer facilities, retail payments and even partnerships with merchants. pricing is certainly another key element. contrary to some perception, financial inclusion operates on market terms and does not require any special pricing concession. to make this effective, we believe it to be important that the financial consumer is provided with accurate information on

us $ 30. 1 billion in 2019. but there are risks to the strong recovery prospects. the emergence of highly transmissible covid - 19 variants could delay the normalization of economic activities. while vaccines have helped lessen severe covid - 19 cases and lower hospitalizations, the reduced efficacy of existing vaccines against more virulent covid - 19 variants may force governments to reimpose stricter lockdown measures to prevent rapid spread of infections. these restrictions, if prolonged, could impede the global economy ’ s recovery in the first half of 2022. 2 / 4 bis central bankers'speeches nonetheless, in the case of the philippines, the timely imposition of quarantine restrictions may help control covid - 19 surges and arrest the spread of the more transmissible omicron variant. on the external front, the ongoing policy normalization by major central banks could affect capital flows and heighten volatility in financial markets. on the positive side, the policy normalization of advanced economy central banks may provide opportunities for economies like the philippines in terms of increased trade activities. we expect the philippine economy ’ s growth trajectory to improve further owing to the projected expansion of exports in 2022. from q1 - q3 2021, goods exports grew by 16. 0 percent owing to the recovery in demand from our major trading partners. electronic products account for more than half of the country ’ s total exports. and we expect exports of electronic products to increase as demand for semiconductors and other electronic components rises owning to more extensive global digitalization efforts across multiple sectors. also lending support to the improved export outlook are higher commodity prices in mineral and agro - based products, and an increase in domestic production capacity. the normalization of the presently highly accommodative monetary policy in advanced economies is expected to cause a rebalancing of global capital flows and depreciation of emerging markets ’ currencies vis - a - vis the dollar. while such a move could potentially affect all emerging economies, the effect on each individual economy will be uneven. our assessment is that the philippines is in a favorable position to navigate this tightening of global financial conditions given its manageable inflation environment and sufficient external buffers. the current level of gross international reserves ( gir ) of usd109 billion is more than sufficient to withstand adverse external shocks. structural flows from overseas filipino remittances, it - bpm revenues, and foreign direct investments can be counted on to further boost