• The recent weakness of the peso is “not large enough” to upset inflation expectations and trigger any policy actions from the Bangko Sentral ng Pilipinas (BSP), Governor Eli Remolona Jr. said on Wednesday.
  • At a press conference, Remolona said the local currency’s slump was “not a case of a weak peso, [but] a case of a strong dollar” as the greenback regained strength amid heightened tensions in the Middle East and increasing bets on a delayed easing by the US Federal Reserve.
  • On Wednesday, the peso sank deeper into the 57-level, closing at 57.18 against the dollar, from its previous closing of 57.
  • “The magnitude of the adjustment of the peso has not been large enough to affect inflation expectations. So, for now, I think the impact on monetary policy is, I would say, not large,” the BSP chief said.