The central bank is comfortable with the current peso-dollar exchange rate even though the local currency fell anew against the greenback on the last trading day of the week.
The Philippine currency slipped by 0.44 percent or 22 centavos to P49.78 to $1, hitting a new eight-year low since trading at P49.83:$1 on Nov. 24, 2008.
Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said the exchange rate is normally the first line of defense in adjusting to new shocks against peso and the rest of the economy.
Given the uncertainties about Brexit, Fed rate hike, China slowdown and new leadership in the US, the peso is now the country’s tool of adjustment, he said in a text message.
“As long as the volatility remains manageable and speculative plays are held at bay, we should allow the adjustment to continue,” he, Guinigundo noted.
“After all, we should remember that our fundamentals remain sound with third quarter real gross domestic product at 7.1 percent—which would anchor all of these adjustments and rebalancing to manageable proportions. The BSP remains attentive and we keep on monitoring the situation,” he added.