The Philippines’ central bank is committed to stabilizing the peso and curbing sharp fluctuations, particularly if the currency weakens, according to Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona. His remarks came amid increased volatility in emerging markets, including Indonesia and Turkey.
In an interview with Bloomberg TV’s Haslinda Amin on Wednesday, Remolona expressed concern about the inflationary risks posed by significant depreciation of the peso. “A large swing toward depreciation tends to be inflationary, so we worry about that and must resist it,” he said.
Interventions by the BSP have already helped reduce one-month peso volatility from a four-year peak seen in November. However, recent instability in emerging markets—exemplified by a crisis in Turkey’s lira and a downturn in Indonesian stocks—has heightened vigilance among central banks, as fragile risk sentiment looms over global markets.
Remolona warned that if the U.S. dollar strengthens further, the peso could face renewed pressure, potentially approaching the record low of 59 seen in December.
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