Downtrend in financial markets a global phenomenon
Balita News
downtrend in the bourse and the mild depreciation of the local currency is
a phenomenon reflected in other financial markets around the world due to
concerns raised on the direction of interest rates in the United States.
He said the current bearish trend in the Dow Jones index in New York has
influenced the movement of the stock markets in other parts of the world,
including the Philippines and other Asian countries.
"Yan eh nangyayari po sa buong daigdig. Kaya nga po ito eh sumusunod lamang
doon sa nangyayari sa US. Pati po yung stock market nila kamukha ng Dow
Jones eh bumababa din. Yan po eh chain reaction yan (This is happening
around the world, our stock market is just being influenced by what's
happening in the US, where the Dow Jones is also experiencing a downtrend.
This is causing a chain reaction)," he said on his radio program Itawag Mo
Kay Erap aired over dzrH.
He said another factor is the concern raised by traders on the recent rise
of interest rates in the United States, which has also raised the interest
rates on dollars.
"Hindi naman natin kontrolado ang dolyar (We cannot control the dollar),"
the President said.
Earlier, Secretary Edgardo Espiritu of the Department of Finance assured
the public there is no need to worry over the slight depreciation of the
peso against the dollar.
He said there is no need for the Bangko Sentral ng Pilipinas to intervene
because there have been no sharp fluctuations in the peso-dollar exchange
rate, noting that the local currency's value against the greenback dropped
by at least one peso over a span of five months.
Espiritu also pointed out that the BSP has large foreign reserves to
cushion the impact of the peso's weakening.
The country's foreign exchange reserves has reached a record-high of $14
billion and is expected to remain strong with the steady flow of
remittances from overseas Filipino workers and the entry of foreign
investments and dollar loans.
Espiritu noted that currencies in neighboring countries such as Thailand
and Indonesia, and even Taiwan, have also experienced mild dips due to
apprehensions about the possible devaluation of the Chinese yuan and doubts
about the performance of the United States economy. (OPS) /alm
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