Philippines Uses Dollar Pile Against Speculators, Governor Says
- Reserve ratio cut not monetary easing, Governor Espenilla says
- Benchmark rate, term deposit rates, size signal policy stance
Photographer: Brent Lewin/Bloomberg
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The Philippine central bank sells dollars from its pile to curb excessive peso volatility against speculators using a cut in banks’ reserve ratios “as pretext,” Governor Nestor Espenilla said.
The peso, the worst-performing among emerging markets next to the Argentine currency, fell the most in three weeks on Feb. 19 after the Bangko Sentral ng Pilipinas (BSP) announced a cut in lenders’ reserve requirement ratio (RRR) to 19 percent from 20 percent. While the move effective March will free up 90 billion pesos ($1.7 billion) from banks’ vaults, Espenilla said this isn’t monetary easing.