Saturday, 21 July 2007

Philippines: BSP warns rapid rise of peso risks volatility

By Maricel E. Burgonio, Reporter
THE Bangko Sentral ng Pilipinas (BSP) warned that the peso’s rapid appreciation risks financial volatility, as the local currency closed the week at its strongest in seven years buoyed by continued dollar inflows to the Philippine stock market.
At the Philippine Dealing System, the local unit closed at 44.80 against the dollar on Friday from the closing price of 45 the day before.
The peso opened at 44.999 and rose to its closing price. Trading volume amounted to $517 million.
“The peso is buoyed by equity-related inflows and is moving up against the US dollar like the other regional currencies,” BSP Governor Amando M. Tetangco Jr., said, referring to increased foreign interest in the local stock market as a number of Philippine companies are selling shares to the public for the first time. These include Aboitiz Power Corp. and GMA Network. [Read more]

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