Philippines: BSP keeps calm, allows orderly peso movement – 5 Sep 2017

  • The Bangko Sentral ng Pilipinas (BSP) on 4 Sep 17 vowed to exercise self-restraint as the peso is not likely to stand still under a floating exchange rate regime.
  • BSP Governor Nestor Espenilla Jr. said authorities would continue to craft and implement rational as well as transparent rules to promote order in the foreign exchange market.
  • Espenilla said the BSP produces and publishes high quality and trusted information as well as objective analyses that enable and promote rational decision-making by all players in the foreign exchange market.
  • He said an orderly market could sway the decisions of market players trying to figure out the right price of the dollar in peso terms as they buy and sell dollars as a consequence of their own transactions with customers.
  • Espenilla said the BSP has the resources and regulatory powers to run after speculators in the foreign exchange market.
  • “The BSP stands ready to intervene and neutralize the activity of speculators so they don’t define the market. They can’t be allowed to distort price discovery in search of quick profits by promoting exaggerated price movements and instability,” he said.

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