Philippines to curb forex speculation as peso approaches record low

MANILA (Bloomberg): The Philippine central bank is trying to rein in speculation in the foreign-exchange market, Governor Eli Remolona said, as the peso weakens toward a record low.

The Bangko Sentral ng Pilipinas intervened in the market on Tuesday in small amounts, Remolona told reporters at an event in Manila late Wednesday. The peso dropped 0.4% to 58.29 per dollar on Thursday and is closing in on the record-low 59 level it reached in 2022.

"In situations in which the peso depreciates, there’s a tendency for stress; the dealers, the traders, they tend to offer big amounts when they’re trying to sell the peso,” Remolona said.

"Sometimes the price fluctuates more than before, so we try to control that.”

Bearishness toward the peso increased after Remolona said last week that the BSP may begin cutting its benchmark rate as early as August.

The currency has lost 3.5% this quarter, and is the worst performer in emerging markets after the Argentine peso.

- ©2024 Bloomberg L.P.

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