Peso firms up on expected COVID-19 vaccine arrival on Feb. 28

The Philippine peso closed the week on a strong note Friday as news on the arrival of the country’s first doses of COVID-19 for the government’s mass inoculation plan turned favorable for the local unit.

The local currency gained 1.5 centavos to close at P48.59:$1 from Wednesday’s finish at 48.605.

Financial markets were closed on Thursday, in observance of the 35th anniversary of the EDSA People Power Revolution.

“The peso exchange rate again closed slightly stronger versus the US dollar for the third day, by P0.015 or 0.03% to close at 48.59... ahead of the scheduled arrival of the first COVID-19 vaccines from Sinovac at 600,000 doses on February 28, 2021 with the rollouts expected shortly thereafter,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said.

President Rodrigo Duterte will personally welcome China's donation of 600,000 COVID-19 vaccines from Sinovac once they arrive in the country, according to presidential spokesperson Harry Roque. 

“Peso also stronger after the net foreign portfolio investment inflow data,” Ricafort said.

Data released by the Bangko Sentral ng Pilipinas (BSP) showed the foreign portfolio investments or “hot money” in the Philippines registered a net inflow of $98 million in January, a reversal from the net outflow of $524 million posted in December 2020. —LDF, GMA News