THE Bangko Sentral ng Pilipinas (BSP) said the recent peso depreciation may reflect market concerns over a potential moderation in economic growth due in part to the infrastructure spending controversy, as well as expectations of additional monetary policy easing.
The BSP made the statement after the peso touched the 59 to a dollar level during Tuesday’s trading.
“The Bangko Sentral ng Pilipinas allows the exchange rate to be determined by market forces,” the BSP said.
“We continue to maintain robust reserves. When we do participate in the market, it is largely to dampen inflationary swings in the exchange rate over time rather than to prevent day-to-day volatility, “ it added.
The BSP said the peso continues to be supported by resilient remittance inflows, still relatively fast economic growth, low inflation and ongoing structural reforms.
“Foreign exchange inflows from business process outsourcing, tourism and overseas Filipino workers continue to buffer external shocks,” the central bank said. / PNA