Malacañang unfazed by low peso

Malacañang on Monday expressed belief that the peso will make a comeback after the currency fell to its lowest in nearly 11 years.

“We stand foursquare behind and beside BSP Governor Espenilla in his continued prudent management of our currency and the country’s international payments position,” presidential spokesperson Ernesto Abella said during a briefing.

The peso dipped closed at P51.080:$1 on Monday, the weakest since it closed at P51.210:$1 on August 28, 2006.

Abella echoed Bangko Sentral ng Pilipines Governor Nestor Espenilla Jr.’s explanation that the peso depreciation was a result of market reactions to overseas developments, including the word war and nuclear threats between the United States and North Korea.

“We expect that as international tensions ease and remittances, trade and tourism revenues pick up in latter months, those holding pesos will see their funds again,” Abella said.

“Over the long-term, we share the Governor’s confidence that the peso gets stronger amid our solid fundamentals, massive currency reserves and increasing attractiveness to foreign investments as our infrastructure upgrades and expands,” he added. —JST, GMA News