{"id":126867,"date":"2017-10-27T02:02:49","date_gmt":"2017-10-27T06:02:49","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=126867"},"modified":"2025-01-08T20:52:10","modified_gmt":"2025-01-09T01:52:10","slug":"bsp-chief-peso-still-stable-amids-hitting-11-year-lows","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2017\/10\/27\/bsp-chief-peso-still-stable-amids-hitting-11-year-lows\/","title":{"rendered":"BSP chief: Peso still stable amids hitting 11-year lows"},"content":{"rendered":"
\"FILE:<\/a>
FILE: Bangko Sentral ng Pilipinas (BSP) (PNA Photo)<\/figcaption><\/figure>\n

MANILA<\/strong> \u2014 Hopes for additional hikes in the Federal Reserve rates as well as naming of a hawk to head the Fed are the recent reasons for the drop of the Philippine peso to its 11-year low to a greenback.<\/p>\n

Amid this, Philippine monetary officials continue to assure the public that the peso remains stable and that there is no need to worry about its recent depreciation.<\/p>\n

Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla Jr. told reporters that Philippine central bankers remain confident of the peso and its recent weakness is just part of an \u201cadjustment process.\u201d<\/p>\n

He stressed that domestic economic fundamentals remain sound, with external debt still low, inflation remains manageable, growth continues to be firm and the current account, despite being in deficit, is still \u201chighly financeable.\u201d<\/p>\n

\u201cThe Philippines today is a very different economy than the crisis economy in the 1980s wherein our reserves are negative if you include the liabilities of the BSP,\u201d he said.<\/p>\n

Espenilla said the BSP does not need to intervene big time on the peso since the central bank has taken a market-determined policy on the foreign exchange.<\/p>\n

buy paxil online https:\/\/www.sip.sal.edu.in\/wp-content\/uploads\/2024\/08\/jpg\/paxil.html<\/a> no prescription pharmacy <\/div>\n

<\/p>\n

\u201cThe exchange rate is a policy instrument of the BSP not a target so it is allowed to move flexibly in line with global external and domestic shocks,\u201d he said, noting that \u201call of the fears and uncertainties in the world are reflected in the day to day volatility of the exchange rate.<\/p>\n

buy cialis super force online https:\/\/www.sip.sal.edu.in\/wp-content\/uploads\/2024\/08\/jpg\/cialis-super-force.html<\/a> no prescription pharmacy <\/div>\n

\u201d<\/p>\n

He considers the latest depreciation level of the local unit as moderate and gradual and assured the public that the central bank is always ready on its \u201ctactical intervention\u201d to address extreme volatility.<\/p>\n

\u201cMy only point is that it is not a target for the BSP but we believe that the peso is going to be generally stable over the medium term horizon,\u201d he said.<\/p>\n

The central bank chief also said there is no need to adjust policy rates because of the latest peso movement because increasing the key rates, which is focused on inflation, \u201chas a bigger economy-wide impact.\u201d<\/p>\n

\u201cIf the foreign exchange is already beginning to influence inflation in a way that makes us breach our target, then that may warrant a response from the BSP. But I said we have other tools. We’ve got big reserves that we use for tactical intervention,\u201d he said.<\/p>\n

The BSP currently have one of the lowest key policy rates in the world.<\/p>\n

To date, its overnight borrowing or reverse repurchase (RRP) rate is three percent, the overnight lending or repurchase (RP) rate is 3.5 percent and rate of the special deposit account (SDA) rate is 2.5 percent.<\/p>\n

These three represent the central bank\u2019s Interest Rate Corridor (IRC), put in place since June 2016 to make the BSP better manage inflation and support long term growth.<\/p>\n

As of end-September this year, the country\u2019s gross international reserves (GIR) reached USD 81.35 billion, enough to cover 8.5 months\u2019 worth of imports of goods and payments of services and primary income.<\/p>\n

On Wednesday, the peso finished the day at 51.77, PHP0.23 down from the previous day\u2019s close and the weakest since its 51.87 finish on July 25, 2006.<\/p>\n

Meanwhile, rate of price increases continues to rise, with the September 2017 level at 3.4 percent from month-ago\u2019s 3.1 percent.<\/p>\n

However, average inflation rate in the first nine months this year stood at 3.1 percent, within the government\u2019s two to four percent target for 2017 to 2019 and below the central bank\u2019s 3.<\/p>\n

buy female cialis online https:\/\/www.sip.sal.edu.in\/wp-content\/uploads\/2024\/08\/jpg\/female-cialis.html<\/a> no prescription pharmacy <\/div>\n

2 percent forecast for the three-year period.\u00a0(PNA)<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA \u2014 Hopes for additional hikes in the Federal Reserve rates as well as naming of a hawk to head …<\/p>\n","protected":false},"author":33,"featured_media":109791,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[20472,29706,21349],"class_list":["post-126867","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bangko-sentral-ng-pilipinas-bsp","tag-federal-reserve-rates","tag-governor-nestor-a-espenilla-jr","mauthors-joann-villanueva","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/126867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=126867"}],"version-history":[{"count":1,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/126867\/revisions"}],"predecessor-version":[{"id":281264,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/126867\/revisions\/281264"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/109791"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=126867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=126867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=126867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}