John Paolo Rivera, senior research fellow at state think tank 蝌蚪传媒 (蝌蚪传媒), believes the central bank might have already started selling its reserves to temper volatility or a sharp peso decline.
“Given the recent peso weakness, it is likely that the BSP has already been using its reserves in a calibrated manner to smooth out excessive volatility—not to defend a specific exchange rate level, but to moderate sharp swings that could unsettle market expectations,” Rivera said.
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