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Philippines
Friday, March 29, 2024

Peso rebounds to 49.7 a dollar

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The peso strengthened to a two-month high against the US dollar on Monday, buoyed by the government’s tax amnesty plan and the expected passage of the comprehensive tax reform program.

The peso gained P0.38 to close at 49.705 against the greenback from 50.08 on Friday. It was also the local currency’s strongest level in two months, or since it settled at 49.69 a dollar on Feb. 6.

Total volume traded reached $1.119 billion, higher than $504 million on Friday.

“Our traders receive report that the market seems to be encouraged by the good prospects of the government’s tax reform package and tax amnesty plan,” Bangko Sentral Deputy Governor Diwa Guinigundo said in a statement to reporters.

“As you know, we have expressed support of such a plan because from a monetary perspective, over the medium term, that is going to be a positive for price stability,” he said.

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Guinigundo said infrastructure spending was a winning proposition for everyone. He also said the country’s sustained positive macroeconomic outlook on growth and price stability helped convince the market that it needed to consolidate and reconsider its unfavorable view about the peso. 

“Despite some political noise, the economy is well on its track of demonstrating its good performance despite the risky operating environment,” Guinigundo said.

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