Department of Finance reports: Philippine peso 2nd strongest currency in Asia

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The Philippine peso is the second strongest among the top currencies in Asia as of July, the Department of Finance (DoF) says in a report on Monday.

The department welcomed the increase of the Philippine currency’s rank (next to Thailand with 4.27 percent), appreciated by 2.82 percent against the US dollar during the period.

“As of July 2019, the Philippine peso ranked second among the top currencies in Southeast Asia gaining strength against the US dollar,” the DOF said in its Economic Bulletin.

The local currency was followed by the Indonesia rupiah (2.69 percent), India rupee (1.06 percent), Japan yen (0.93 percent), Malaysia ringgit (0.34 percent), and Hong Kong dollar (0.21 percent).

Also, DOF said that peso was among the most stable currencies in the region during the period, which ranked 6th among 12 currencies.

“The main reasons for the peso’s growing strength and stability are the country’s strong balance-of-payments (BOP) position and rising Gross International Reserves (GIR),” the Finance department stated

“Strong foreign exchange inflows from exports of services, remittances, income from investments abroad, direct foreign investments and foreign borrowing all contributed to the strong BOP position. These, in turn, boosted the confidence in the Philippine peso,” it added.

Meanwhile, Cid Terosa, dean of the School of Economics at the University of Asia and the Pacific (UA&P) said that “relatively strong macroeconomic fundamentals and “less engagement” when it comes to global value links, could make the peso less vulnerable to fluctuations.

Source: GMA News

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