Strength of peso due to sound macroeconomic fundamentals

Bangko Sentral ng Pilipinas Governor Benjamin Diokno attributed the current strength of the Philippine peso to the country’s sound macroeconomic fundamentals characterized by a benign national inflation environment, a strong and resilient local banking system, prudent fiscal position and a sufficient level of international reserve buffer.

Diokno said, “The peso should continue to reflect emerging demand and supply conditions in the foreign exchange market as well as the continued soundness in the country’s macroeconomic fundamentals over the near term.”

The local currency has also performed better compared to many Southeast Asian currencies and appreciated vis-à-vis the US dollar along with the Taiwanese dollar, Chinese yuan, South Korean won, and the Japanese yen.

Several analysts are expecting the Philippine peso to remain strong in the near term and maintain its resiliency as one of Asia’s top-performing currencies.

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