Peso closed Wednesday, Oct. 5 at P58.65 against $1, an improvement from P59 against the greenback on Tuesday, Oct. 4.
“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. What we can do is to bring all transactions into an organized and accessible formal market that offers consumer protection,” the central bank said in a statement.
“Market conditions around the world are challenging. Working together allows us to sustain our functioning financial market while appropriately managing the developing risks,” it added.
The BSP explained that there are many reasons financial markets worldwide have been experiencing notable changes thus far in 2022. Among the pronounced developments is a strong US Dollar (USD) which is causing currencies like the Philippine Peso to depreciate.
The Ayala-led BPI earlier said it continues to expect peso depreciation in the medium term as imports will likely increase further due to the recovery of the economy.
“Dollar demand may pick up and keep the exchange rate above the 56 level,” the bank said in its Sept. 22 report following the latest hike in interest rates by the BSP. “Meanwhile, the possibility of tighter dollar supply may contribute further to peso depreciation.”
Amid the exchange rate pressures, the BSP said it is taking steps to manage any disruption in the country’s financial market.
“We look forward to servicing all legitimate dollar transactions. The USD spot market remains open and active while forwards and repos are available facilities,” the central bank said. “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. This puts the Filipino in a better position.”