Volatility mitigation: People lounge around against the backdrop of a sunset at Manila Bay. Remolona says global factors, rather than domestic ones, are often the key drivers of volatility in emerging market currencies. — AFP
MANILA: The Philippine central bank says its periodic intervention in currency markets aims to stem pressures if the peso was to weaken, but that it’s not trying to manage capital flows into and out of the country.
“We don’t like to do capital flow management – we stay away from that, and we continue to stay away from that,” Bangko Sentral ng Pilipinas (BSP) governor Eli Remolona said in a panel discussion at the International Monetary Fund meetings in Washington last Friday.
