Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona stated that the recent depreciation of the Philippine peso should not be categorized as poor performance but rather as an adjustment to events and the strength of the US dollar.
Remolona explained that the peso’s depreciation was influenced by events in the Middle East and a speech by Federal Reserve Chair Jerome Powell, which led to a postponement of the expected easing by the Federal Open Market Committee.
He emphasized that it is not a case of a weak peso but a strong dollar.
The impact of the peso’s depreciation on inflation has not been significant so far, but it may be a factor in the next policy meeting of the Monetary Board scheduled for May 13, 2024.
Remolona also expressed hope that hostilities in the Middle East would not escalate further. The peso’s recent performance has been influenced by external factors rather than internal weaknesses
Source: PhilNews24 | April 18, 2024
