Peso up as Cruz denies quitting over policy rift

The Philippine peso strengthened against the US dollar on Wednesday as National Treasurer Omar Cruz denied talks that he had a policy row with other members of the country's economic team. Cruz also denied that Malacanang eased him out of his post, which he has held for two years. The peso closed at 47.55 against the US dollar on Wednesday stronger than its 47.53 close in the previous session. During early trading, however, the local currency touched a low of 47.64 against the dollar as investors reacted to Cruz surprise resignation on Tuesday night. The local currency strengthened during afternoon trading, even hitting the key 47.50 level against the greenback. Volume traded reached $658.30 million. In a hastily called press conference, Cruz denied that he had any policy difference with other members of the country's economic team, particularly the Bangko Sentral ng Pilipinas (BSP) and the Department of Finance – International Finance Group. “I would like to say that there are no policy differences. The reason why there can’t be no policy differences is because in the first place the fiscal area is independent from the monetary area," Cruz said. “Therefore as far as policy differences are concerned with the BSP there are no policy differences," he added. In a hastily called press conference, the outgoing national treasurer denied that he had any policy difference with other members of the economic team particularly the Bangko Sentral ng Pilipinas (BSP) and the Department of Finance – International Finance Group on issues pertaining to interest rates. “I would like to say that there are no policy differences. The reason why there can’t be no policy differences is because in the first place the fiscal area is independent from the monetary area," he stressed. “Therefore as far as policy differences are concerned with the BSP there are no policy differences," he said. Cruz reiterated that he is leaving his post to spend more time with his family, especially his ailing, 84 year-old mother. Early on Wednesday, President Gloria Macapagal Arroyo accepted Cruz' resignation, which takes effect on June 1. Career highlights With Cruz at the Treasury's helm, the country's debt stock was reduced to P3.851 trillion or 64 percent of gross domestic product in 2006, a significant change from 72 percent debt to GDP ratio in 2005. Also under Cruz' term, the Philippine treasury bill yields dropped to all-time lows as investors expressed confidence in the country's stabilizing fiscal condition. It was also under his term that the Treasury successfully completed a $1 billion bond issue last January, the Philippines' total programmed commercial borrowing for the year. The outgoing Treasurer said he is content with what he has achieved in the two years he held the post. “I am leaving with a very confident and light heart," Cruz said.-GMANews.TV