BY JIMMY CALAPATI
THE peso yesterday broke the P50-to-a-dollar
level as the market continued to shun risks.
"Risk-aversion pressures are still present,"
Bangko Sentral Gov. Amando Tetangco yesterday said.
The peso opened at P50 to a dollar yesterday
and hit low of P50.17 within an hour of trading. By mid-trade,
the currency recovered and hit a high of 49.80. It closed at
49.82, 17 centavos higher than Thursday’s close of 49.99.
Total volume reached $622.50, the highest
this week.
Tetangco maintained that the country is doing
well in terms of economic fundamentals, but events in other
parts of the world are introducing volatilities.
"The economy has proven its resilience. (A)
4.6 percent (growth) in the second quarter is respectable. BPO
sector remains robust. On the domestic credit side, we continue
to see healthy growth. There is liquidity so we are expecting
growth to continue although at slower pace. GDP growth is
forecast at 4.1 and 4.8 percent in 2008, still within the
long-term growth goal of the economy," Tetangco said.
"Though the economy is still doing well, in
the short run, the fundamentals are neglected," Tetangco added.
The central bank chief said the volatility is
not unique to the Philippines.
"The currency is still moving in tandem with
other currencies," Tetangco said.
The peso was last seen closing at P50 to a
dollar on Oct. 6, 2006.
Tetangco said remittances from overseas at
$1.3 to $1.4 billion a month will continue to support the peso
although the flow has been affected by the global crisis.
"Remittances have been affected by
risk-aversion, evident in weakened stock market and pressure on
exchange rate," Tetangco said.
A trader said some overseas Filipinos might
be holding on to their dollars in anticipation of further
weakening of the peso.
According to the BSP, remittances of overseas
Filipinos coursed through banks grew by 16.9 percent in
September to $1.3 billion, compared to $1.1 billion a year ago.
Remittances have remained above the one
billion dollar-level for the past 29 months.
Total remittances year-to-date have reached
$12.3 billion, 17.1 percent higher than the level posted during
the same period a year ago at $10.5 billion.
"Robust remittance flows have been shored up by strong
overseas demand for Filipino skills, and the greater
availability of expanded money transfer services to overseas
Filipinos and their beneficiaries," he said.
