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| Image via GMA News |
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.
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