MANILA: Companies in the Philippines are stepping up efforts to limit foreign exchange risks as global uncertainty fuels sharp swings in the peso, according to Bank of America Corp (BofA).
“A lot of them do hedging and it’s very helpful for them, especially with the peso becoming very volatile,” Vince Valdepenas, the bank’s country head, said in an interview.
Firms have been actively using forwards, cross-currency swaps and offshore solutions offered by the bank, he said, with both local firms and multinationals increasing their activity amid currency turbulence.
The pickup in hedging reflects how Philippine corporates are managing risks tied to global interest rate shifts and geopolitical tensions which have roiled emerging market currencies, the Bank of America Corp said. — Bloomberg
