By Joann Santiago
MANILA, Aug. 11 (PNA) — The Philippines’ improved macrofundamentals are seen to be likely considered by markets on their assessment of the local currency’s position against other units.
This, after Asian currencies posted across-the-board deprecation Tuesday following the People’s Bank of China’s (PBoC) decision to further devalue the yuan by nearly two percent to help buoy the world’s second largest economy.
The peso shed Php0.17 against the dollar and ended Tuesday at Php45.93 but Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said the general weakening of Asian currencies is as expected.
He, however, pointed out that if the adjustment in the yuan proved effective in boosting China’s exports in the near-term “that could help sustain regional trade and in turn help support global growth.”
”The peso will continue to be affected by external developments, such as this, but market participants are also expected to put weight on the country’s sound macrofundamentals,” he added.
Relatively, Bank of the Philippine Island (BPI) lead economist Emilio Neri Jr. said markets were taken aback by the PBoC’s decision.
He said Chinese monetary officials’ decision may spiral to the rest of the region.
“We will continue to outperform but it will still be a depreciation like the rest. But it will not be as much as the others,” he added. (PNA)