The Philippine central bank said it is taking steps to “manage any disruption” in the financial market, as it asked people not to take undue
advantage of developments.
“We ask those who have the means not to take undue advantage of changing market conditions,” Bangko Sentral ng Pilipinas said in an emailed statement. “This does not help the Philippine peso; it does not help the Philippines.”
BSP’s statement comes as the peso fell to a record low. The peso slumped more than 13% this year, as the Federal Reserve’s interest-rate hikes lifted the dollar to unprecedented highs. BSP did not elaborate on the steps it is taking.
“The statement appears to be part of ‘soft’ jawboning efforts to guard against further Philippine peso weakness,” said Yanxi Tan, a currency strategist at Malayan Banking Berhad in Singapore. “BSP’s concerns, as reflected in the statement, could be providing some peripheral support for Philippine peso”
BSP said it looks forward to servicing legitimate dollar transactions, adding the spot market remains open and
active while forwards and
repurchase agreements are available.