BAP taps Bloomberg as calculation agent for peso-$ spot reference rate

The Bankers Association of the Philippines (BAP) has appointed Bloomberg as the calculation agent for the peso-dollar spot reference rate.

“We are pleased to partner with Bloomberg to provide enhanced solutions to the FX (foreign exchange) community in the Philippines,” BAP managing director Benjamin Castillo said in an emailed statement on Monday.

Bloomberg will calculate the peso-dollar spot reference rate based on trades carried out by member banks of the association.

The spot exchange rate, as defined by Investopedia, is the price to exchange one currency for another, reflecting the price of a nation’s currency in terms of another currency.

The BAP said the foreign exchange rate will not be affected by reforms happening in the spot exchange rate.

“These new initiatives will support the Bangko Sentral ng Pilipinas’ financial market development reforms to better organize and deepen the country’s FX market,” Castillo said.

“We look forward to execution efficiency, increased market liquidity, and transparency leveraging Bloomberg’s technology platform and industry best practices,” he said.

BAP member banks will execute spot trading on Bloomberg’s foreign exchange trading and communication platform FXGO.

“Bloomberg is excited to extend our ongoing partnership with the Bankers Association of the Philippines by improving transparency and efficiency in the Philippines FX market,” Bloomberg head of sales Andrea Mosconi said. —Jon Viktor Cabuenas/VDS, GMA News