Philippine Peso to climb up to P43 to $1
In spite of the prediction of some economist that the peso will soon weaken, especially during the coming elections, it continues it upwards surge. According to American banking giant Citigroup, it even sees the peso strengthening to 43 to $1.
According to Citigroup economist Jun Trinidad, the country’s “export earnings as well as the tightening of the monetary policies in the Asia Pacific region would continue to support the strengthening of the peso against the US dollar.”
Trinidad pointed out that “indicators of onshore stock of foreign exchange reserves and foreign exchange net inflows in the balances of payments (BOP) as well as other accounts do not confirm that Philippine financial markets are being swamped by a surge of offshore flows consistent with strong risk taking positions that are being seen in other regional markets.”
The Bangko Sentral ng Pilipinas (BSP) released its latest data showing that country’s gross international reserves (GIR) went up by 18.2 percent to a new record of level of $46.16 billion as of the first quarter while BSP-registered portfolio investments or “hot money” surged by 602 percent to $384.75 million.
“If we focus on either the GIR that serves as a catch-all account for current and previous net flows arising from trade and capital account transactions or the net forward book of the BSP, the year-to-date differential of either stock measure including its sum did not show unusually hefty increases that can further justify rapid nominal exchange rate appreciation,” Trinidad added.
April 20, 2010
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Tags: dollar, dollar trading, economy, Foreign exchange, forex, money, Peso, Philippine В· Posted in: economy, finance, Foreign exchange, money, Philippines
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