MANILA – The Philippine central bank engages in “tactical intervention” in the foreign exchange market to prevent excessive volatility, its governor said on Wednesday, as the peso hit an 11-year low against the dollar.
Bangko Sentral ng Pilipinas Governor Nestor Espenilla said the peso is “allowed to move flexibly in line with global external and domestic shocks.”
“All of the fears and uncertainties of the world are reflected in the day-to-day volatility of the exchange rate. We allow it to reflect that,” he told a business forum.
Espenilla said he expects the peso, Asia’s worst performer so far this year, to “be stable over a medium-term horizon.”
