MANILA (Reuters) - The Philippine central bank engages in “tactical intervention” in the foreign exchange market to prevent excessive volatility, its governor said on Wednesday, as the peso hit an 11-year low against the dollar.
Bangko Sentral ng Pilipinas Governor Nestor Espenilla said the peso PHP=PDSP is "allowed to move flexibly in line with global external and domestic shocks."
“All of the fears and uncertainties of the world are reflected in the day-to-day volatility of the exchange rate. We allow it to reflect that,” he told a business forum.
Espenilla said he expects the peso, Asia’s worst performer so far this year, to “be stable over a medium-term horizon.”
Reporting by Neil Jerome Morales; Editing by Kim Coghill