Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Monday the war between Russia and Ukraine would have an insignificant impact to the domestic banking system given the limited economic and business links between the Philippines and the two Eastern European countries.
Diokno said in a message to reporters solid macroeconomic fundamentals would enable the economy to ride out any potential risks coming from the external front. “The economic fallout from the Russia-Ukraine on the Philippine economy is limited for three reasons: first, the country’s geographic distance from the conflict area; second, the country’s limited economic and business links with both Russia and Ukraine; and third, its strong macroeconomic fundamentals,” Diokno said.
He said the Philippines’ direct trade links with both countries were negligible. Data showed that exports to Russia only amounted to $120 million or 0.2 percent of the Philippines’ total exports in 2021, while exports to Ukraine amounted to a measly $5 million.