052507: BSP seen allowing more peso gains

 

 

By LEE C. CHIPONGIAN The Bangko Sentral ng Pilipinas (BSP) will likely allow the peso to appreciate further to P45: to "take some pressure off reserve purchases," foreign exchange market analysts said yesterday. The peso closed P45.87 versus the US dollar yesterday from P46.31 Monday. It has since gone down to the R46/ range closing yesterday at R46.24 to the dollar. "The peso continues to strengthen but relative to the other regional currencies (like the Indonesian rupiah and the Thai baht)," BSP Governor-in charge Diwa C. Guinigundo said. "We remain competitive (the) challenge is for the affected sectors to do the necessary adjustments." For example, Guinigundo said affected sectors such as exporters can avail of public support from the Exporters Promotional Fund, a P500 million financing from the different government agencies including the BSP and DTI. Hongkong Shanghai Banking Corp. (HSBC) said the rapid money supply growth on the back of surging remittances will have to be controlled by monetary authorities. The BSP recently implemented three liquidity management measures – on top of the tiering scheme — to siphon of at least P200 billion from M3 or domestic liquidity.

 

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