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Manila committed

to deregulate forex market

SINGAPORE: The Philippines central bank is committed to deregulate foreign exchange flows by further reviewing remaining measures in foreign exchange transactions, a senior Philippine monetary official said.

"While the Bangko Sentral is committed to financial deregulation and liberalisation, it is also mandated to maintain the stability of the financial system," Caytano Paderanga, member of the Monetary Board of the Philippines central bank, also told a foreign exchange forum.

To achieve that, the central bank intends to strengthen its supervisory power by training personnel on audit and control systems as well as familiarising them with new financial instruments, Paderanga said.

On further deregulation of foreign exchange transactions, the official said the central bank is committed to improving international competitiveness within the framework of a market-determined exchange rate.

Paderanga told the forum, "It will allow the exchange rate to seek its own level and intervene only to smooth sharp fluctuations arising from speculative activities."

The Bangko Sentral will continue to pursue prudential debt management to ensure access to voluntary capital markets remains open, Paderanga said.

The central bank "shall adopt an external debt management policy which shall ensure adequate foreign exchange inflows needed to sustain growth, and that debt service payments are kept within manageable levels," he said. -Reuter