MANILA– The Philippine central bank said yesterday, the depreciation of the Philippine peso “reflects global developments,” particularly the strengthening of the U.S. dollar.
“There are many reasons why financial markets worldwide have been experiencing notable changes, thus far, in 2022. Among the pronounced developments is a strong U.S. dollar, which is causing currencies like the Philippine peso to depreciate,” the Bangko Sentral ng Pilipinas said.
The Philippine peso slid to a new record low to the U.S. dollar, closing at 59 pesos on Monday, according to data from the Bankers Association of the Philippines. Since the end of 2021, the peso has depreciated by over 15 percent to the greenback.
Some analysts expressed their concerns about a continuing depreciation of the peso, due to the “aggressive” monetary policy by the U.S. Federal Reserve.
The central bank said, it is committed to enhancing a financial system that addresses the funding needs of the public, while managing risks.
Source: Nam News Network