MANILA – The Bangko Sentral ng Pilipinas (BSP) is urging market players to remain responsible amidst the latest developments in the financial market since volatilities are causing currencies, among others, to weaken.
On Monday, the peso posted another record-low close against the greenback after it finished the trade at 59.00, which authorities and analysts traced to US dollar’s strength given the sustained hikes in the Federal Reserve’s key rates.
The local currency, however, recovered on Tuesday and finished the trade at 58.65 to a US dollar.
In a statement, the BSP said it is “taking steps to manage any disruption in our financial market.”
The central bank said it is “look(ing) forward to servicing all legitimate dollar transactions”, adding “the USD (US dollar) spot market remains open and active while forwards and repo (repurchase) are available facilities.”
“All of these can move the economy forward by supporting the financial leg underpinning economic activity and allowing for an orderly settlement of USD obligations,” it said.
The BSP said it is committed to enhancing the well-being of Filipinos through a financial system that addresses the funding needs of the public while managing risks.
“We ask those who have the means not to take advantage of changing market conditions. This does not help the Philippine peso; it does not help the Philippines,” it said. “What we can do is to bring all transactions into an organized and accessible formal market that offers consumer protection.”
As market conditions around the world are challenging, the BSP said “working together allows us to sustain our functioning financial market while appropriately managing the developing risks.” (PNA)