BSP again says no to deliberate weakening of the peso
November 6, 2012
The Bangko Sentral ng Pilipinas, reiterating earlier statements it made in early October, again insisted it will not deliberately weaken the peso against the US dollar. Rather, the BSP would have the exchange rate determined by the market.
The BSP explained that, while deliberately weakening the peso may benefit exporters, the same move could be disadvantageous to other sector.
The clamor for the BSP to weaken the peso comes from export groups and some economists supporting the export sector. They said the appreciation of the peso so far this year has made Philippine-made goods more expensive in dollar terms and thus less competitive in the global market.
They want the BSP to engage more heavily in dollar buying in the foreign exchange market so that the dollar will strengthen and the peso will weaken.
BSP Governor Amando Tetangco Jr., however, said exporters should not rely on the exchange rate to remain competitive.
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