Photo illustration of US dollar to PH peso exchange in this photo taken on September 30, 2022. Gigie Cruz, ABS-CBN News

Peso and dollar bills

Lady Vicencio

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:950px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/171333420901720220930-us-dollar-ph-peso-bill-GCS09014.jpg" style="width:950px" class="fr-fic fr-dib"/><span class="fr-inner" style="text-align:left"><span id="isPasted" style="color:rgb(51, 51, 51);letter-spacing:normal;orphans:2;text-align:left;text-indent:0px;text-transform:none;widows:2;word-spacing:0px;-webkit-text-stroke-width:0px;white-space:pre-wrap;background-color:rgb(255, 255, 255);text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial;display:inline !important;float:none">Photo illustration of US dollar to PH peso exchange in this photo taken on September 30, 2022. <em>Gigie Cruz, ABS-CBN News</em></span></span></span></span></div><p>MANILA (UPDATE) -- Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. <span id="isPasted" style="color:rgb(65, 65, 65);letter-spacing:normal;orphans:2;text-align:left;text-indent:0px;text-transform:none;white-space:normal;widows:2;word-spacing:0px;-webkit-text-stroke-width:0px;background-color:rgb(255, 255, 255);text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial;display:inline !important;float:none">said the peso&#x27;s recent depreciation does not mean that the local currency is performing poorly, but rather because the US currency has become stronger. </span></p><div><span id="isPasted">After closing at a 17-month low of P57 to the US dollar on Tuesday, the peso slid further to P57. 18 on Wednesday.</span></div><p>The BSP chief partly attributed the peso&#x27;s slide to geopolitical tensions and speculation over the US Federal Reserve&#x27;s next steps.  </p><div><a href="https://news.abs-cbn.com/business/2024/4/16/peso-falls-to-57-to-dollar-stocks-plunge-amid-mideast-conflict-2109" id="isPasted" rel="noopener noreferrer" target="_blank">Peso falls to 57 to dollar; stocks plunge amid Mideast conflict</a></div><p>“I wouldn’t say it is performing poorly. I would say it’s adjusting to some events initially weakened along with other emerging market currencies because of what’s going on in the Middle East,” Remolona said in a press conference on Wednesday.</p><p>The central bank chief added that the decline may have been a reaction to Fed Chairman Jerome Powell’s signal that rate cuts in the US may come later than expected.</p><p>“I think it’s adjusting to Powell’s speech that maybe they won’t ease until September, or September is kinda how people interpreted what Powell said. So there’s a postponement of when the FOMC (Federal Open Market Committee) will ease in the eyes of the market. So that has meant weakening of other currencies against the US dollar,” Remolona said.</p><p>“So it’s not a case of a weak peso. It’s a case of a strong dollar,” he added.</p><div><ivs-player data-ivs-key="e8c22c015ca9eafa76f1e3edfa03c603" data-ivs-spid="3001339" data-ivs-vid="3015057"></ivs-player></div><script src="https://player.ivideosmart.com/ivsplayer/v4/dist/js/loader.js"></script><div><strong>RATE CUT IN Q4 OR 2025</strong></div><p>Remolona also does not see the weakening of the peso to be sharp enough to warrant adjusting interest rates.</p><p>With inflation accelerating for two consecutive months, the BSP earlier said policy easing may not come soon as inflation risks continue to lean on the upside.</p><p>Remolona also said the adjustment of the peso has not been large enough to affect inflation expectations.</p><p>The Monetary Board may also reconsider cutting rates this year.</p><p>“The central scenario will be fourth quarter. If things are worse, then we might postpone to first quarter of 2025,” Remolona said.</p><p>BMI, a unit of Fitch Solutions, expects the Philippine peso to remain volatile in the short term due to the constant repricing of interest rate expectations in the US.</p><p>Despite weakening by around 2 percent year-to-date, the peso has held up relatively well compared to its regional peers, BMI said.</p><p>The peso&#x27;s volatility is expected to ease once the Fed implements its first rate cut in July, with the peso seen stabilizing at around P56.50 to the dollar. </p><div><br/></div><div><br/></div>

<p>Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. does not see the recent peso decline to be significant enough affect monetary policy.</p>

Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. does not see the recent peso decline to be significant enough affect monetary policy.

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Peso fall not due to weakness but dollar strength: BSP chief

Peso fall not due to weakness but dollar strength: BSP chief

Lady Vicencio,

ABS-CBN News

Published Apr 17, 2024 03:20 PM PHT

|

Updated Apr 17, 2024 04:34 PM PHT

Read More:

peso

dollar

exchange rate

forex

BSP

Bangko Sentral

Eli Remolona

Federal Reserve

Jerome Powell

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