Philippine central bank sells US$ reserves to manage peso volatility

Manila

THE Philippines central bank is selling its US dollar reserves as a defensive measure to manage excessive volatility driven by speculation against the peso, which is hovering near 11-year lows, the bank's governor said on Sunday.

The Bangko Sentral ng Pilipinas (BSP) chief sought to allay concerns that recent market reforms would put more pressure on an already weak currency and stoke inflation. "BSP sells foreign exchange from its reserves to manage excessive peso volatility," said BSP governor Nestor Espenilla, adding that the tongue cancer which he had been diagnosed with in November was successfully treated and that he was closely monitoring the financial markets.