Paubos na bala? BSP begs banks not to take advantage of weak peso

By Eileen Mencias

The Bangko Sentral ng Pilipinas said it will be servicing all legitimate dollar transactions but begged banks not to take ‘undue advantage’ of the changing market conditions.

“The BSP is taking steps to manage any disruption in our financial market. We look forward to servicing all legitimate dollar transactions,” the BSP said as the peso slid to an all-time low of P59 against the dollar last October 3.

“We ask those who have the means not to take undue advantage of changing market conditions. This does not help the Philippine peso; it does not help the Philippines,” the BSP said in a statement.

The BSP has been criticized for not keeping in step with the rate hikes of the US Federal Reserve which strengthened the dollar, and in turn, weakened the peso.

This is the first time that the BSP made a plea to market players. In the past, the central bank would quickly call out speculators and subject their books to an audit.

With a balance of payments deficit projected at $8.4 billion and dollar reserves falling to $97.44 billion from December’s $108.79 billion, the BSP does not have a lot of options.