MANILA — The Philippine government’s 43-46 peso-dollar assumption for 2015 remain realistic amidst recent volatility of the currency due to external developments such as the Greece debt crisis.
This was stressed by Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo Monday when asked for his assessment of the current situation.
He explained that “a protracted resolution of the Greek crisis will be accompanied by occasional volatilities in the financial markets.”
He, however, pointed out that “what is crucial is for market players to have the long view and refrain from taking drastic actions based on short-term episodes and considering them as fundamentals.”
“The Philippines remains a resilient economy with strong growth prospects, lower inflation forecasts and robust external payments position. Thus the P43 to P46 exchange rate assumption continues to be realistic,” he added.
The local currency ended the week’s first trading day at 45.16, sideways from the 45.12 at the end of last week.
The peso has been trading sideways against the greenback as an impact of investors’ wait-and-see stance on the debt situation in Greece.
After Sunday’s Eurozone summit, the European country’s creditors have agreed “in principle” to give Greece its third bailout program but its officials have to pass by Wednesday reforms being asked by Eurozone leaders.
This transpired a week after a referendum was made wherein most Greeks declined the implementation of austerity measures. Results of the referendum provided for another set of talks between Greece officials and the country’s creditors.
Last June 30, Greece defaulted from paying the International Monetary Fund (IMF) 1.5 billion euro.