 |
Philippine peso appreciates by nearly 6%Manila, Philippines - Dec 16, 2005 The Central Bank of the Philippines said the Philippine peso has appreciated by 5.7 percent since the beginning of the year, with the foreign exchange rate on Thursday touching a high of P53.16 to a dollar, the highest in two years and seven months.
The day's weighted average of the peso was P53.234 with the volume of trade reaching US$ 437 million. The peso averaged at P56.341 on January 3, the first trading day of the year. In a press conference, Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said the peso has shown relatively lower volatility compared with other Asian currencies, including the Japanese yen, the Thai bath and the Indonesian rupiah. The peso had a volatility of only 1.4 percent, compared to the yen's 4.45 percent, baht's 2.79 percent and the rupiah's 3.58 percent. Asked whether the peso could appreciate to P52 to a dollar before the year ends, Tetangco said, "that will depend on the behavior of both inflows and outflows. At this point in time, sentiment continues to be very positive and the peso continues to gain ground because of favorable developments on both sides of the equation." He noted the healthy level of portfolio investments, which as of November 25, was at a net inflow of US$ 2.1 billion, and the sustained increase in remittances from overseas Filipino workers (OFWs). "You've got sustained inflows coming from portfolio investments and OFW remittances and this time of the year, the corporate demand as expected, is relatively moderate. Going forward, during this season, one can still expect continuation of substantial OFW remittances so that would continue to support the value of the Philippine peso," Tetangco said. He also noted that if the increase in the value added tax (VAT) rate from 10 percent to 12 percent in February, as promised by the Arroyo administration, the local currency may continue to strengthen beyond February next year. "If the economic reforms are implemented, that will continue to bolster confidence in the economy and so these investments can stay, especially if corporate performance continues to be favorable," he said. (PNA)
Top of News: Philippine Peso appreciates
|
