STRONG domestic fundamentals, along with the gradual reopening of the domestic economy and the continued build-up of foreign reserves, are expected to further boost the Philippine peso’s strength.
In a briefing Friday, BSP Gov. Benjamin Diokno said the peso continues to show resilience even during the pandemic as the “market continues to focus on the Philippines’ strong macroeconomic fundamentals.”
As of Dec. 10, 2020, the local currency has appreciated by around 5.35 percent against the greenback after it closed the trade at P48.07 vis-à-vis its P50.41 closing level in end-2019, he said.
Economic managers’ peso-US dollar assumption for this year has been revised to P48-50 while it is between P48-53 for 2021-2022.
Diokno attributed these developments partly to the government’s ability to manage its debt, citing the Philippines’ favorable ranking among emerging market economies.
“The BSP believes that the key to keeping the stable performance of the peso is to preserve the country’s sound macroeconomic fundamentals and continued adherence to a market-determined foreign exchange policy,” Diokno said.
Diokno, however, said risks remain and these include concerns on the upticks in COVID-19 infections, OFW deployment, tourist arrivals, and the availability and deployment of COVID-19 vaccines. (with PNA/PN)
