{"id":278994,"date":"2020-12-18T01:43:57","date_gmt":"2020-12-18T06:43:57","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=278994"},"modified":"2020-12-18T01:43:57","modified_gmt":"2020-12-18T06:43:57","slug":"peso-seen-to-strengthen-further-in-2021","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2020\/12\/18\/peso-seen-to-strengthen-further-in-2021\/","title":{"rendered":"Peso seen to strengthen further in 2021"},"content":{"rendered":"
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As of Dec. 10, 2020, the local currency has appreciated by around 5.35 percent against the greenback after it closed the trade at PHP48.07 vis-\u00e0-vis its PHP50.41 closing level in end-2019, he said. (Pixabay photo)<\/figcaption><\/figure>\n
MANILA<\/strong>\u00a0\u2013 Strong domestic fundamentals, along with the gradual reopening of the domestic economy and the continued build-up of foreign reserves, are expected to further boost the Philippine peso\u2019s strength.<\/div>\n
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In a briefing Friday, BSP Governor Benjamin Diokno said the peso continues to show resilience even during the pandemic as the \u201cmarket continues to focus on the Philippines\u2019 strong macroeconomic fundamentals.\u201d<\/div>\n
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As of Dec. 10, 2020, the local currency has appreciated by around 5.35 percent against the greenback after it closed the trade at PHP48.07 vis-\u00e0-vis its PHP50.41 closing level in end-2019, he said.<\/div>\n
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On Thursday, the local currency ended the trade at 48.045 to a US dollar.<\/div>\n
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Economic managers\u2019 peso-US dollar assumption for this year has been revised to PHP48-50 while it is between PHP48-53 for 2021-2022.<\/div>\n
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Diokno attributed these developments partly to the government\u2019s ability to manage its debt, citing the Philippines’ favorable ranking among emerging market economies.<\/div>\n
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Other factors that support the peso include the gradual recovery of foreign direct investments (FDI) and remittances, the affirmation of the country\u2019s credit ratings, increase in foreign exchange reserves, the national government\u2019s US dollar deposits with the central bank, and gains from BSP\u2019s investments overseas.<\/div>\n
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\u201cThe BSP believes that the key to keeping the stable performance of the peso is to preserve the country\u2019s sound macroeconomic fundamentals and continued adherence to a market-determined foreign exchange policy,\u201d Diokno said.<\/div>\n
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For 2021, he said the local currency \u201cshould continue to reflect emerging demand and supply conditions in the foreign exchange market as well as continued soundness in the country\u2019s macroeconomic fundamentals.\u201d<\/div>\n
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Diokno, however, said risks remain and these include concerns on the upticks in coronavirus disease (Covid-19) infections, OFW deployment, tourist arrivals, and the availability and deployment of Covid-19 vaccines.<\/div>\n
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Among the positive impacts of the peso\u2019s appreciation against the greenback include the drop in the peso equivalent of the government and private sector\u2019s foreign debt.<\/div>\n
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\u201cIn this sense, when the peso appreciates, then the country will spend less pesos for servicing foreign-denominated debt, hence, enabling it to realize savings, which can then be used to fund essential public expenditures,\u201d Diokno added.<\/div>\n","protected":false},"excerpt":{"rendered":"

MANILA\u00a0\u2013 Strong domestic fundamentals, along with the gradual reopening of the domestic economy and the continued build-up of foreign reserves, …<\/p>\n","protected":false},"author":33,"featured_media":128657,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[56533,9322],"class_list":["post-278994","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-joann-villanueva","tag-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/278994","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=278994"}],"version-history":[{"count":1,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/278994\/revisions"}],"predecessor-version":[{"id":279002,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/278994\/revisions\/279002"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/128657"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=278994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=278994"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=278994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}