‘BSP ready to mitigate excessive peso volatility’

Monetary authorities are ready to mitigate any unnecessary movement” and excessive volatility” in the foreign exchange market as the peso sank to fresh 17-month lows against the dollar, according to Bangko Sentral ng Pilipinas BSP) Governor Eli Remolona Jr.

- KEISHA TA-ASAN

Remolona said the recent volatility in the foreign exchange market was due to a strong dollar rather than a weak peso.

"Escalating tensions in the Middle East led to safe-haven flows into the dollar at the expense of most other currencies.

Nonetheless, the BSP continues to monitor the market and stands ready to manage any unnecessary movement and excessive volatility," Remolona said.

The comments from the BSP chief came after the peso slumped to 57.78 to $1 on Thursday, weakening by 23 centavos from its previous finish. It marked the peso's weakest close in more than 17 months or since its 58.19 to $1 finish in November 2022.

The local currency yesterday gained by seven centavos to close at 57.71 to $1.