MANILA, Philippines - Malacañang shares the optimism of the Bangko Sentral ng Pilipinas (BSP) on the peso, saying the local currency will recover once global tension eases.
Presidential spokesman Ernesto Abella said the short-term volatility of the peso was caused by market reactions to overseas developments.
“We expect that as international tensions ease, remittances, trade and tourism revenues will pick up in latter months. Those holding pesos will see their funds again,” Abella said in a press briefing yesterday.
The local currency breached the P51 to $1 territory last Friday in the wake of concerns over the exchange of verbal threats between the leaders of the United States and North Korea.
Earlier, BSP Governor Nestor Espenilla expressed confidence the peso would not do a free fall because of “solid” and “very strong” economic fundamentals.
He also urged investors to “calm down” because the peso could correct itself “as the market calms down and digests the relevant information.”
Abella said Malacañang supports BSP’s “continued prudent management” of the Philippine currency and international payments position.
“Over the long term, we share the governor’s confidence that the peso gets stronger amidst our solid fundamentals, massive currency reserves and increasing attractiveness to foreign investments, as our interest structure upgrades and expands,” the presidential spokesman said.