Peso up on gov’t raising €2.1B from euro-denominated global bond sale

The Philippine peso appreciated further against the US dollar on Friday after the government raised €2.1 billion from the issuance of euro-denominated global bonds which could jack up the country’s foreign currency reserves.

The local currency gained 2.9 centavos to close at P48.381:$1 from Thursday’s close at 48.41.

Rizal Commercial Banking Corp. chief economist Michael Ricafort attributed the peso’s strength to the national government’s issuance of euro-denominated bonds, wherein it raised €2.1 billion. 

The recently completed ¥55-billion Samurai bond sale also added boost to the peso, according to Ricafort.

“The proceeds of both could be added to the country’s BOP (balance of payments) and GIR (gross international reserves),” he said.

The economist added that local unit also firmed up versus the greenback after the Philippines received 500,000 additional Sinovac COVID-19 doses and again scheduled to receive another 500,000 doses next week, together with a total of 500,000 Sputnik V doses by the end of April, increasing confidence on possible easing of quarantine restrictions which could eventually lead to faster economic recovery.

Since the start of 2021, the peso still was weaker against the US dollar by P0.358 or 0.7% from its P48.023:$1 finish in the last trading day of 2020.—LDF, GMA News