Malacañang said the recent weakening of the peso against the US dollar was driven by a mix of global and domestic factors, with the Bangko Sentral ng Pilipinas (BSP) closely monitoring the situation and standing ready to act if needed.
Palace Press Officer Claire Castro said President Ferdinand R. Marcos Jr. is in constant coordination with monetary authorities.
The peso hit a record low of P59.46 per dollar on Wednesday, down by two centavos from the P59.44 close on Wednesday.
“First of all, the BSP and the President always have meetings,” Castro said during a Malacañang press briefing on Thursday.
She said the peso’s movement reflects developments beyond government control.
“The recent rise of the peso against the dollar was caused by global and local events. First, the strengthening of the dollar, then speculation about whether the US Federal Reserve will lower interest rates, tensions between the US and Venezuela, as well as the market’s vigilance over the performance of our economy,” she said.
Castro said the BSP does not see any need to intervene to stop the peso’s struggle against the US dollar.
“The Bangko Sentral ng Pilipinas continues to monitor the peso-dollar exchange rate so that it can take appropriate action if necessary. For now, our Central Bank is confident that they do not need to intervene yet,” she said.
To cushion the impact of peso weakness, Castro said the government is focused on tempering inflation, supporting investments and strengthening key economic sectors.
For his part, BSP Governor Eli Remolona earlier said that there is “tremendous pressure to defend the peso,” but the central bank thinks otherwise.
“I feel the pressure, but the economics of it is we shouldn’t,” he said.
Remolona said other export-led Asian economies “like to purposely weaken their currency.”
However, Remolona assured the public that the BSP intervenes in the market to address excessive volatility.
PIXABAY PHOTO