Government Ramps Up Infra, Enterprise Support For Surigao Norte IPs

Ang mga proyekto ng DA-13 sa Surigao Norte ay alinsunod sa layunin na bigyang suporta ang Mamanwa tribe sa kanilang pag-unlad.

NEDA Board Oks Enhanced E-Voucher Food Stamp Program

Pinagtibay ng NEDA Board ang Enhanced E-Voucher Food Stamp Program, isang hakbang para sa mas magandang seguridad sa pagkain at kalusugan ng mga Pilipino.

Philippines, United Kingdom Near GBP5 Billion Infra Deal Under G2G Partnership

Ang pagtutulungan ng Pilipinas at UK ay nagbubukas ng bagong mga pagkakataon sa pamamagitan ng isang G2G partnership sa imprastruktura.

Aparri Marine Research Hub To Boost Blue Economy, Coastal Livelihood

Ang marine research hub sa Aparri ay nagbibigay-daang sa mga pagsisikap na palakasin ang kabuhayan ng coastal communities at ang kanilang resilience.

BSP Developing Foreign Exchange Intervention Framework

Bangko Sentral ng Pilipinas Governor announces development of foreign exchange intervention framework to contain stress, intervention to be infrequent, focusing on determining stress triggers and studying peers’ actions.


BSP Developing Foreign Exchange Intervention Framework

18
18

How do you feel about this story?

Like
Love
Haha
Wow
Sad
Angry

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said Thursday the central bank would develop this year a foreign exchange (FX) intervention framework.

“We’re developing a framework for intervention. We think intervention should only happen during times of stress. It’s meant to contain stress,” Remolona said in his speech at the 22nd Weekly Membership Meeting of the members of the Rotary Club of Makati held at the Manila Polo Club.

“I think we’ve been intervening a bit too much. If it’s about containing stress, that also means intervention should be infrequent.”

Citing an example, he said October 2022 was a “stressful episode.”

To recall, the peso closed at 59 to the US dollar in October 2022, which was attributed to the dollar’s strength after the sustained hikes in the Federal Reserve’s key rates.

“So those are the events in which we want to intervene,” Remolona said.

He noted that the BSP should know what causes the peso movement.

“We are talking about the framework for the FXI, so we have a homework to do, to study. If we intervene… like I said, it’s to contain stress, but how do you tell that it’s stress?” he said.

Remolona cited the importance of looking at the country’s peers and not just focusing on the peso-dollar exchange.

“So, one of our homework is to know our peers. Which countries are on the same boat as we are? That’s still not clear. In the next weeks maybe we’ll understand more,” he said.

“The Monetary Board wants to be briefed on this. So, the first effort will be to know enough to brief the Monetary Board.” (PNA)