BoB allays fears of looming liquidity crunch

For the first time in 20 months the banking system was recently short, a development analysts feared marked the return of the 2014 liquidity crunch that forced the central bank to intervene and release P2.3 billion into the system to boost liquidity.

Director of  financial markets at the central bank, Matthew Wright told BusinessWeek that the reduced liquidity, which was first noticed at the end of November last year, was a temporary occurrence at this time of the year as foreign companies repatriate profits while government does not sell any diamonds in December.