Philippines Allowing Market to Determine FX as Peso Slumps

The Philippine central bank is letting market forces set the dollar-peso exchange rate, saying that strong remittances and economic growth will support the local currency which hit a record low on Tuesday.

“The Bangko Sentral ng Pilipinas allows the exchange rate to be determined by market forces,” it said in a statement. “When we do participate in the market, it is largely to dampen inflationary swings in the exchange rate over time rather than to prevent day-to-day volatility.”