The Philippine peso has been the least volatile among Asian currencies so far this year, sparing local businesses from the ill effects of an erratic exchange rate that beset other emerging markets in the wake of the global economic slowdown.
The Bangko Sentral ng Pilipinas said that as of Dec. 20, the volatility of the peso, or the degree of daily fluctuation, stood at 1.23 percent, the most benign movement among major currencies in Asia, the central bank said.
The Japanese yen was the most volatile at 3.13 percent; followed by the Singaporean dollar at 2.47 percent; Indonesian rupiah, 2.33 percent; Malaysian ringgit, 2.11 percent; Thai baht, 1.38 percent and Chinese yuan, 1.34 percent.
“The peso remains competitive. In fact, it is the least volatile among the basket of currencies,” BSP Governor Amando Tetangco Jr. said on Thursday in a briefing.
The peso also depreciated by only 0.07 percent so far this year.
On the other hand, the Thai baht fell by 3.67 percent, the Malaysian ringgit by 3.23 percent, the Indonesian rupiah by 1.5 percent, and the Singaporean dollar by 1.14 percent. The Japanese yen, meanwhile, appreciated by 4.5 percent.
The BSP said its policy is to let the market determine the value of the peso although it does intervene if needed to avoid too much fluctuation.
The BSP has often been urged by exporters to engage in heavier dollar buying to deliberately weaken the peso.
Exporters said the peso is still relatively strong, and weakening it should help improve their competitiveness amid weakening global demand.