Philippine banks pledge to fight speculative activities after weakening peso

THE Bankers Association of the Philippines (BAP) vows to help maintain the orderly functioning of the fixed-income and foreign exchange markets.

In a statement Wednesday, Oct. 12, 2022, the industry group said it appreciates and supports the policy initiatives of the Bangko Sentral ng Pilipinas towards liberalization and transparent price discovery — including the conduct of its supervisory mandate that ensures orderly markets.

“Together, we will work against speculative activities that tend to distort market prices and hurt the economy,” the group said.

BAP president Antonio Moncupa said “with the global headwinds adversely affecting inflation and foreign exchange rates across the world, the BAP joins national efforts to minimize its impact on our people by avoiding activities that can only worsen the situation.”

The local currency closed P59 against US dollar on Thursday, Oct. 13.

Earlier, the Bangko Sentral ng Pilipinas said it is taking steps to manage any disruption in the country’s financial market. It also asked those who have the means not to take undue advantage of changing market conditions.

“This does not help the Philippine Peso; it does not help the Philippines. What we can do is to bring all transactions into an organized and accessible formal market that offers consumer protection,” the central bank said.

“In order to be part of the solution, the banking industry continues to work closely with the BSP for orderly, fair, and transparent markets minus the unproductive activities that only hurt the public,” Moncupa said.