Get a glimpse of Philippines' moves to fight off peso appreciation

The peso recently appreciated by over 6% vs US dollar.

Citing a Bloomberg report, BBVA said that in a move similar to one made by South Korea in November, the Philippines central bank announced it will impose a ceiling on non-deliverable currency forwards for local lenders at 20% of capital, and 100% for foreign entities. 

"The peso has appreciated by more than 6% versus the US dollar this year as the Philippines economy has remained strong (Q3 growth accelerated to 7.1% y/y from 5.9% y/y in Q2) – but today’s move was seen as necessary to stem the rise in the peso, which may negatively affect the country’s exporters. We think growth will remain robust in the Philippines, putting the country on track to eventually receive an investment grade rating," BBVA noted.