BSP: “This does not help the Philippine peso; it does not help the Philippines”
BSP — The Bangko Sentral ng Pilipinas recently appealed to people not to take “undue advantage” of the changing market conditions.
In an emailed statement to GMA News Online on Tuesday, the central bank said that the BSP remains committed to addressing the funding needs of the public given the notable changes in global financial markets.
The central bank also appealed to people not to take “undue advantage” of changing market conditions since it “does not help the Philippine peso” and “does not help the Philippines”.
BSP added that the central bank is taking steps in order to address disruptions in the financial market, adding that the USD spot market “remains open and active” while forwards and repos are available facilities.
According to the central bank, all of those can move the economy forward by “supporting the financial leg underpinning economic activity” and by allowing for an orderly settlement of USD obligations.
“Market conditions around the world are challenging. Working together allows us to sustain our functioning financial market while appropriately managing the developing risks,” the central bank said.
Meanwhile, COL Financial Head of Institutional Sales Adrian Yu told ANC that the United States is likely to remain the “leading indicator” for global policy rate adjustments.
Based on the report, some analysts as well as the National Economic and Development Authority (NEDA) are betting on the increase in remittances during the holidays in order to prop up the peso in the 4th quarter.