Business & Finance
Philippine central bank could tighten prudential limits if needed
MANILA : The Philippine central bank may consider tightening prudential limits sooner rather than later if market-based
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Tetangco said the central bank's policy tool kit has so far been effective in managing volatility in the foreign exchange market, adding that the movements in the currency have been "manageable."
"What we are working on really is finding market-based solutions to the issues, particularly as these relate to speculative flows," Tetangco said in an email to Reuters.
"If market participants are unable to find solutions among themselves, then the BSP could consider tightening on prudential limits sooner rather than later."
Tetangco said last week the central bank was working with banks to arrest speculative flows into the foreign exchange market, but there were no plans to impose capital controls.
Copyright Reuters, 2011