BSP Asserts Forex Market Remains Stable Despite Peso Depreciation

The Bangko Sentral ng Pilipinas (BSP) said that ample international reserves and steady inflows from remittances and business process outsourcing (BPO) exports are supporting stability in the foreign‑exchange market despite the peso’s depreciation.

BSP Deputy Governor Zeno Abenoja made the remarks on Friday, after the Philippine peso fell to a record low of P64.17 per US dollar on October 27.

Abenoja noted that, even with the currency’s decline, dollar inflows continued to satisfy the foreign‑currency requirements of businesses and households.

He added that the BSP has been monitoring market developments and the potential inflationary effects of exchange‑rate movements.

The central bank also emphasized that the country’s international reserves remained more than sufficient, and that remittances from overseas Filipinos continued to increase, albeit at a slower rate.

BPO revenues also continued to rise, adding another source of foreign‑exchange earnings for the country.

These factors, Abenoja said during a press briefing at the economic and investment forum in Iloilo City, continue to support stability in the foreign‑exchange market.

Abenoja added that the BSP is closely monitoring foreign‑exchange developments and will work to maintain orderly market conditions.

“We want the foreign‑exchange market to operate in an orderly manner,” Abenoja said.

“We want the market to meet the needs of our growing economy, which is one of our primary objectives,” he added.

He assured the public that the central bank is monitoring for possible inflationary effects from significant exchange‑rate movements, which could exacerbate existing price pressures.

“We will strive to support market functioning so that we can meet the foreign‑exchange needs of businesses and households,” Abenoja said.

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