Peso stays at 44 to a dollar

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The Philippine peso stayed at the P44 to a dollar territory despite the release of the second-quarter gross domestic product figure.

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The local currency closed at P44.75 to a dollar on Thursday, the same as Wednesday’s close.

For Arsenio Balisacan, director general of the National Economic and Development Authority, with the strong macroeconomic fundamentals, the country has the means to manage risks that arise with volatilities, including those of the stock market and Philippine peso.

The Philippine economy managed to expand by 7.5 percent for the second quarter of the year.

“It is important to recognize that these volatility is externally driven . . . uncertainties in the case of the United States tapering of the quantitative easing, and the Syrian and Egyptian crisis that could affect oil prices,” he said.

Balisacan admitted that no economy is immune from the impact of that crisis . . . but with its macroeconomic situation, the Philippines was in much better position compared to other economies in terms of inflation and current accounts.

He noted that the country’s inflation rate, which was at the low-end of the target rate, can still absorb the inflationary impact of the peso deprecation.

“This gives the Bangko Sental ng Pilipinas enough flexibility to counter some adverse effects of volatility,” Balisacan said.

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