Finance Secretary Carlos “Sonny” G. Dominguez III urges small investors to invest in the Government’s maiden onshore retail dollar bond (RDBs) offering.
MANILA — The Finance chief says investing in RDBs will promote financial inclusion while raising funds for the country’s coronavirus response.
“With a minimum investment of just 300 US dollars or about ₱15,000, small investors can now grow their US (United States) dollar savings,” says Mr Dominguez.
Economists noted that this plan to democratize dollar-bond investing means that banks would do away with their current practice of requiring depositors to open dollar accounts with a minimum balance of $500 to $1,000 before being able to invest in the RDBs.
“The Retail Dollar Bonds (RDBs) will offer our small investors an outlet for diversifying their investment portfolios. They do not need to keep their dollar holdings in deposit accounts that pay minimal interest,” the finance secretary says further.
He says the RDBs and the digital innovations put in place to make investing easier and more convenient, will allow Filipinos, especially overseas Filipino workers (OFWs), to buy Government securities without having to pay out “huge commissions to brokers and traders.”
These digital innovations include the Bonds.PH, the mobile applications of the Overseas Filipino Bank (OFBank) and Land Bank of the Philippines (LandBank), and the Treasury’s Online Ordering Facility.
“I encourage our people to invest their savings in dollar bonds. This is a win-win proposition. Retail dollar bonds provide a safe investment and income opportunity. Buying them will help raise funds for our economic investments and the nation’s comprehensive effort to defeat the pandemic,” says Mr Dominguez.
Meanwhile, the Bureau of Treasury (BTr) has launched a mobile application to enable investors to learn and understand the fundraising and debt management activities of the National Government.
Earlier, the BTr said it has teamed up with the country’s leading banks to let small investors buy the RDBs at easy terms. (JD/The MiNT)