By The SUN
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| Exchange rate for the peso as of yesterday (Inquirer graphic) |
The peso dropped to a historic
low of 56.45:US$1 on Tuesday, Jul 12, before recovering slightly to close at
56.375 to the USD, its lowest level since November 2004.
Analysts say the local currency is likely to fall even more against the greenback unless the Bangko Sentral ng Pilipinas becomes more aggressive in raising interest rate.
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| PINDUTIN PARA SA DETALYE |
BSP has been hesitant to
hike rates as the country’s trade deficit continued to widen to new records,
and inflation broke through the upper end of its target range of 2 percent to 4
percent.
“The peso is set to weaken further in the near term as BSP stays dovish while inflation heats up further,” one analyst predicted.
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| PINDUTIN PARA SA DETALYE |
Yesterday’s close was the peso’s weakest in 17 years and eight months or since Nov 5, 2004, when it closed at 56.375:US$1.
Its decline is also attributed partly to a weakening of local market sentiment as the number of Covid-19 cases rose to its highest level in four and a half months.
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BSP could intervene to
arrest the peso’s decline as it did in 2004-2005, but analysts say it’s still a
wait-and-see prospect.
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| A netizen sparked controversy with the folded Php1k bill that she said was rejected by SM |
Meanwhile, the BSP told retailers and banks that they should accept Php1,000 polymer bills for day-to-day payments even if they are folded or creased.
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| Press for details |
The statement issued Tuesday was in reaction to an uproar over news that certain business establishments, including the biggest mall chain, SM, had been rejecting the polymer bills if they had been folded.
This was in line with the BSP’s own guidelines that said the new Php1k banknotes should be kept flat inside wallets, particularly the typical bi-fold wallets.
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The BSP also urged the public to keep all banknotes that they use for paying for goods and services clean, unmarked and without creases.
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| PADALA NA! |
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