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The Ph peso may sink to P62 per-dollar exchange per the report. The Central Bank explained the reason behind it: it’s the financial system on the currency Bank of America. It may weaken the Philippine peso. The Central Bank said that the return to P61 per dollar will be in the fourth quarter. Despite the decision to hold rates, the Central Bank maintained a dovish guidance with the possibility of further rate cuts this year and followed the guidance received with large liquidity injections through the reserve requirement ratio rate.
The Central Bank said that there was a current account deficit that stood at $12.9 billion in the first nine months, equivalent to 3.9 % of the gross domestic product. Despite this, it is assured that because of the lowering of the inflation rate, the country could pass through this peso sinking, and the BSP recommends the hedging of pesos to expect to trade to weaken due to US dollar strength and dovish.
Report Source: philstar GLOBAL
The Central Bank said that there was a current account deficit that stood at $12.9 billion in the first nine months, equivalent to 3.9 % of the gross domestic product. Despite this, it is assured that because of the lowering of the inflation rate, the country could pass through this peso sinking, and the BSP recommends the hedging of pesos to expect to trade to weaken due to US dollar strength and dovish.
Report Source: philstar GLOBAL