BSP warns of intervention as peso sinks to 58.28:$1

 

BSP has so far hesitated to prop up the peso 

The Philippine peso dipped in value for the straight day, to close on Tuesday 0.7% lower, to 58.28 to US$1.

The 18-month record low prompted a warning from Bangko Sental ng Pilipinas (Philippine Central Bank) that it would intervene to save the peso from slipping further down.

The local currency shed 37 centavos from Monday’s finish of 57.68:$1. This is the Philippine currency’s worst showing in 18 months since November 8, 2022’s finish of P58.275:$1.

TAWAG NA!

The drop had a corresponding effect on the peso’s exchange rate with the HK dollar, which is pegged to the greenback. Online currency converters show the peso dropping to 7.45 versus the HK dollar.

The peso reached its all-time low of 59.203 against the USD on Sept 22, 2022.

The peso is now near its all-time low of P58.49 posted on Sept 22, 2022

In an emailed statement to Bloomberg, BSP governor Eli Remolona said authorities will step in “when necessary to smoothen excessive volatility and restore order during periods of stress.”

In a separate statement, Remolona said the peso’s decline was in line with other currencies in the region.

He said the greenback strengthened on recent signals from the US Federal Reserve that it will delay cutting interest rates.

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