Rafael Algarra Jr., Executive Vice-president and Financial Markets Segment Head of Security Bank, said in a statement that the current position of the Philippine Peso versus the dollar will stay the same for the first six months of this year.
The Peso is currently at P44 to P45 against the dollar, buoyed by the strong consumer and government spending, as well as continuous dollar inflow. Algarra noted that the brief period when the Peso hit the P45 level was just a temporary stint and was only a marginal effect caused by emerging markets.
The executive added that should emerging markets panic again, the effects on the country will be minimal, if not less.
Meanwhile, the Philippine Dealing and Exchange Corp. stated that the Peso destabilized nominally recently, from P44.58 to P44.63:$1.
The bank executive also noted that after the huge outflow last January, the Philippines will retain its positive position, thanks to the strong supply of remittances and income from BPO operations. There are more dollars coming in than money being spent in the country and that will help strengthen the Peso between P43 and P44.