{"id":18905,"date":"2024-05-24T03:03:36","date_gmt":"2024-05-24T03:03:36","guid":{"rendered":"https:\/\/energybuzz.ph\/staging\/6915\/bsp-seeks-to-curb-forex-speculation\/"},"modified":"2024-05-24T03:03:36","modified_gmt":"2024-05-24T03:03:36","slug":"bsp-seeks-to-curb-forex-speculation","status":"publish","type":"post","link":"https:\/\/energybuzz.ph\/staging\/6915\/bsp-seeks-to-curb-forex-speculation\/","title":{"rendered":"BSP seeks to curb forex speculation"},"content":{"rendered":"
\n

By Luisa Maria Jacinta C. <\/b>Jocson, <\/b><\/span>Reporter<\/i><\/p>\n

THE BANGKO SENTRAL ng<\/span> Pili<\/span>pinas (BSP) will only inter<\/span>vene in the foreign exchange (forex) market to \u201ccontrol the <\/span>speculation,\u201d its top off<\/span>icial said.<\/p>\n

BSP Governor Eli M. Remolona,<\/span> Jr. also said the peso\u2019s recent weakness will not prompt the need for any rate hike.<\/p>\n

\u201cIn situations in which the peso depreciates, there\u2019s a tendency for stress. The dealers, the traders, they tend to offer big amounts when they\u2019re trying to sell the peso and sometimes the prices f<\/span>luctuate more than before. So, we try to control that,\u201d he told reporters late on Wednesday.<\/p>\n

\u201cWe want those who really need dollars to get the dollars at a reasonable price. We\u2019re just trying to control the speculation,\u201d he added.<\/p>\n

The peso closed at P58.13 against the dollar on Thursday, weakening by seven centavos from its P58.06 f<\/span>inish on Wednesday.<\/p>\n

Mr. Remolona said that the central bank intervened by small amounts on Tuesday, when the peso sank to the P58 level for the first time in over 18 months or since Nov. 10, 2022.<\/p>\n

\u201cSo far, it has been steady. There is still no stress. The market remained orderly\u2026 we haven\u2019t been intervening every day and when we do intervene, it\u2019s very modest amounts,\u201d he added.<\/p>\n

Asked if the peso\u2019s depreciation would open up the possibility of a rate hike, Mr. Remolona said this was \u201cnot likely\u201d as inf<\/span>lation expectations remain the key consideration for further tightening.<\/p>\n

\u201cActually, raising the policy rate would entail the inf<\/span>lation expectations getting de-anchored, there we might consider raising but as long as inf<\/span>lation expectations behave and the data going forward are similar to what has been happening, highly unlikely that we will tighten,\u201d he added.<\/p>\n

The Monetary Board kept its benchmark rate at a 17-year high 6.5% for a f<\/span>ifth straight meeting last week.<\/p>\n

The central bank has raised borrowing costs to a cumulative 450 basis points (bps) from May 2022 to October 2023.<\/p>\n

Mr. Remolona reiterated that the earliest the BSP could begin policy easing is by August, with \u201cpossibly\u201d another cut before the end of the year.<\/p>\n

The central bank could cut by up to 25-50 bps for this year, depending on the data, he added.<\/p>\n

NO NEED TO WAIT FOR FED
\n<\/b>Despite the peso weakness, Mr. Remolona maintained that the BSP does not need to wait for the Fed to cut rates.<\/p>\n

\u201cWe don\u2019t care that much when the Fed cuts. We care more about our data,\u201d he said. \u201cOf course, we follow the Fed very closely and what they decide is one data point for us, it\u2019s one among many other data points.\u201d<\/p>\n

The central bank is also comfortable with its level of dollar reserves, the BSP chief said.<\/p>\n

\u201cWe are comfortable with the amount of reserves that we have. The reserves we have exceed what the International Monetary Fund (IMF) considers as adequate. They give us a measure of the reserve adequacy. We\u2019re above that,\u201d he added.<\/span><\/p>\n

Separate data from the BSP showed the country\u2019s gross international reserves inched down by 0.6% to $103.44 billion as of end-April from $104.07 billion at end-March.<\/p>\n

As of end-April, the level of dollar reserves was enough to cover about 5.9 times the country\u2019s short-term external debt based on original maturity and 3.6 times based on residual maturity.<\/span><\/p>\n

It was also equivalent to 7.7 months\u2019 worth of imports of goods and payments of services and primary income.<\/p>\n

FINANCIAL INCLUSION
\n<\/b><\/span>Meanwhile, Queen M\u00e1xima of the Netherlands said that the Philippines has made strides in expanding financial inclusion but that the government must continue to accelerate its efforts.<\/p>\n

\u201cSince my last visit in 2015, Filipinos have much more access to financial inclusion,\u201d she said at a press conference organized by the BSP on Thursday.<\/p>\n

Queen M\u00e1xima is visiting the Philippines in her capacity as the United Nations Secretary-General\u2019s Special Advocate for Inclusive Finance for Development (UNSGSA).<\/p>\n

She noted that financial inclusion may face challenges such as affordability of services and connectivity.<\/span><\/p>\n

\u201cOne of the things is that we see that the cost of connectivity is still very high\u2026 We need to really go to the poorest and to the most distant places. We need to make a lot of investments jointly with the private sector to basically improve connectivity, quality, speed and also reduce the prices. That\u2019s how we\u2019re also going to make payments more affordable for people,\u201d she said.<\/span><\/p>\n

She also noted the need for competition to encourage innovation.<\/span><\/p>\n

The share of Filipinos with bank accounts reached 65% of the adult population in 2022, the BSP reported earlier.<\/p>\n

Mr. Remolona said the BSP talked about open finance with Queen M\u00e1xima, adding this is a \u201cvery promising way to get more and more people involved in the financial system.\u201d<\/p>\n

\u201cWhat we have in the Philippines is the big banks, they each have their own API (application programming interface) platform. That\u2019s not open finance. Open finance means it\u2019s not just connected to one bank, that API is connected to several banks, so that the consumer has a choice of which bank, which financial service would be involved,\u201d he said.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

THE BANGKO SENTRAL ng Pilipinas (BSP) will only intervene in the foreign exchange (forex) market to \u201ccontrol the speculation,\u201d its top official said.<\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[1],"tags":[5796,14644,1023,18043,457,18042],"class_list":["post-18905","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-bsp","tag-bworldonline","tag-curb","tag-forex","tag-seeks","tag-speculation"],"yoast_head":"\nBSP seeks to curb forex speculation - Energy Buzz<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energybuzz.ph\/bsp-seeks-to-curb-forex-speculation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BSP seeks to curb forex speculation - 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