THE Bangko Sentral ng Pilipinas (BSP) said the recent weakness of the local currency was consistent with its aim to keep a flexible exchange rate that would allow the economy to sustain its growth momentum in the long term.
“Pursuing a flexible and adaptive exchange rate policy enables the BSP to keep its interest rate policy settings squarely focused on achieving the inflation target while dampening consumption and supporting a more investment- and export-led growth that the economy needs to sustain its strong momentum over the long haul,” said Bangko Sentral Governor Nestor Espenilla Jr. in a text message to reporters on Monday.
The peso, at present, is trading above P51 to the dollar, weighed down by a war of words between the United States and North Korea.
On Friday, local unit weakened further against the greenback, losing 14 centavos in to close at P51.49:$1, from P51.35:$1 on Thursday. It was the peso’s weakest finish since settling at P51.60:$1 on August 24, 2006. MAYVELIN U. CARABALLO