Peso falls to historic low of ₱59.13

Even as the Philippine peso continued to fall to its weakest-ever level of 59.13 against the United States (US) dollar amid the infrastructure spending controversy, the Bangko Sentral ng Pilipinas (BSP) remained unbothered by the peso’s weakness but assured that it has sufficient US dollar stock to intervene in the rising foreign exchange (forex) rate.

- By DERCO ROSAL

(See related News in Brief story)

“We continue to maintain robust reserves,” the BSP said in a statement on Tuesday, Oct. 28, adding that it will not intervene in the forex direction unless the peso sharply loses footing against the US dollar.

“When we do participate in the market, it is largely to dampen inflationary swings in the exchange rate over time rather than to prevent day-to-day volatility,” the BSP said, noting that it now allows the exchange rate to be determined by market forces.

According to the central bank, the recent drop in the local currency could mean that the market may be reacting to the potential moderation in economic expansion, partly due to the flood control mess.