FIGHT VS. SPECULATIVE ATTACKS. The Bankers Association of the Philippines (BAP) says it continues to work with the central bank to keep foreign exchange and fixed-income markets' orderly operations. It said working with the Bangko Sentral ng Pilipinas (BSP) on this endeavor will help address speculative activities. (PNA file photo)
MANILA – The banking industry is in close coordination with the Bangko Sentral ng Pilipinas (BSP) to ensure orderly functioning fixed-income and foreign exchange markets, an industry group said.
In a statement on Wednesday, the Bankers Association of the Philippines (BAP) said it appreciates and supports the central bank’s policies towards “liberalization and transparent price discovery -- including the conduct of its supervisory mandate that ensures orderly markets.”
“Together, we will work against speculative activities that tend to distort market prices and hurt the economy,” it said.
BAP president Antonio Moncupa said that “with global headwinds adversely affecting inflation and foreign exchange rates across the world, the BAP joins national efforts to minimize its impact on our people by avoiding activities that can only worsen the situation.”
“In order to be part of the solution, the banking industry continues to work closely with the BSP for orderly, fair, and transparent markets minus the unproductive activities that only hurt the public,” he said.
Among others, the elevated inflation rate around the world has made central banks tighten their key rates to help address the situation as economies grapple to recover from the impact of the virus-induced pandemic.
For one, the Federal Reserve has increased its funds rates by 300 basis points since last March to help tame the US’ four-decade high inflation rate.
This has resulted, among others, in the strengthening of the US dollar, which has hurt other currencies, such as the Philippine peso, which registered its record-low 59.00 close to a US dollar last Oct. 3 and Oct. 10.
Earlier, BSP Governor Felipe Medalla said the central bank is “taking steps to manage any disruption in our financial market.”
“We ask those who have the means not to take undue advantage of changing market conditions. This does not help the Philippine peso, it does not help the Philippines,” he said.
Medalla said “what we can do is to bring all transactions into an organized and accessible formal market that offers consumer protection.”
“Market conditions around the world are challenging. Working together allows us to sustain our functioning market while appropriately managing the developing risks,” he added. (PNA)
