THE PESO could gain some support even amid some volatility in the foreign exchange market as the Philippines’ dollar reserves hit its highest level in over a year, analysts said.
“The relatively higher GIR (is seen) to provide a greater buffer for the peso exchange rate vs. the US dollar, as fundamentally supported by the continued growth in the country’s structural US dollar inflows especially from OFW (overseas Filipino worker) remittances, BPO (business process outsourcing) revenues, tourism receipts, foreign investments, among others,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in an e-mail.
This came after the country’s gross international reserves (GIR) stood at a 16-month high of $112.515 billion in January, climbing by an annual 8.95% from $103.271 billion a year ago, based on preliminary data from the Bangko Sentral ng Pilipinas (BSP).
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