- Advertisement -
- Advertisement -
World NewsPhilippine central bank chief says he’s ‘not concerned’ about...

Philippine central bank chief says he’s ‘not concerned’ about recent peso weakness


- Advertisment -

There are multiple reasons why the Philippines’ central bank chief, Benjamin Diokno, is “not concerned” about recent weakness in the peso against the dollar.

As of Tuesday morning during Asia trading hours, the peso has weakened more than 2.5% against the greenback so far this year. It last traded at 52.38 per dollar, after Reuters reported that Ferdinand Marcos Jr. appeared set for a landslide victory in the presidential election.

To be sure, the peso isn’t alone in seeing this trend. Many of its regional peers are also sliding against the greenback as the dollar continues to strengthen against the backdrop of a more hawkish U.S. Federal Reserve, which is again tightening monetary policy as it looks to tame red-hot inflation.

The Indonesian rupiah has lost around 2% against the greenback so far this year, while the Thai baht and Malaysian ringgit have weakened about 4% and 5.2% against the dollar, respectively.

“The depreciation of the peso, you have to look at it in relation to the other currencies in the region, our competitors. And we’re right smack in the middle,” Diokno, governor of Bangko Sentral ng Pilipinas, told CNBC’s Martin Soong ahead of the country’s presidential election.

He also attributed his confidence in the peso to the Philippines’ relatively lower dependence on foreign debt today and its “hefty” pool of international reserves.

“I’ve been here before. And in the past whenever there is a crisis, we run out of dollars to service our foreign debt,” Diokno said. “Now we’re not heavily dependent on foreign debt.”

The Southeast Asian nation also has “hefty gross international reserves” equivalent to 9.6 months of imports — more than three times higher than the usual benchmark of three months, he added.

Furthermore, the central bank governor said, foreign remittances from overseas Filipino workers — “easily around $30 billion a year” — have also given the Philippines access to a steady flow of foreign exchange not previously available. The outsourcing of business processes also adds another $30 billion to the foreign exchange flow, he said.

“We’re not concerned,” he said, adding that the Philippines’ central bank currently has a peso forecast from 48 to 53 against the dollar.

“We don’t shoot for a specific level of the peso, we let market forces determine the peso,” Diokno said.

Source: DUK News

- Advertisement -

Latest news

Inkwell Coffeehouse in Long Branch has closed

The Inkwell Coffeehouse, a Long Branch institution known for its live music, open mic nights and Dutch coffee, has reportedly...

Who was Ademola Okulaja? (Former North Carolina basketball star Ademola Okulaja dead at 46)Wiki, Bio, Age, Instagram, Twitter & Quick Facts

Ademola Okulaja Wiki                           Ademola Okulaja Biography Who was...

Tom Cruise cuts a handsome figure as he joins a Jennifer Connelly at Top Gun: Maverick photocall

Tom Cruise looked more handsome than ever as he attended the photocall for Top Gun: Maverick at the Cannes...

How Old Is Jacqueline Hawileh? Jaylen Brown Girlfriend Or Wife – Are They Married?

Jacqueline Hawileh is notable and perceived as the sweetheart of Jaylen Marselles Brown, a notable b-ball star.During Marsell Brown’s...
- Advertisement -

Ronald Wayne Height, Weight, Net Worth, Age, Birthday, Wikipedia, Who, Nationality, Biography

Ronald Wayne has total assets is supposed to be $500 million starting around 2022.Early Life and adolescence Wayne was...

Now woke Bristol jury CLEARS Kill the Bill rioter as they accept he was acting in self-defence

A woke jury has cleared a Kill the Bill rioter after accepting he was acting in self-defence when he...

Must read

- Advertisement -

You might also likeRELATED
Recommended to you

- Advertisement -