MANILA - Investors should look beyond political uncertainties and consider the Philippines’ strong macroeconomic fundamentals that were built over two decades, the Bangko Sentral ng Pilipinas said Monday.
An impeachment complaint has been filed against President Rodrigo Duterte over alleged extra-judicial killings linked to his war on drugs and there plans to file a separate impeachment case against Vice President Leni Robredo for publicly criticizing the anti-narcotics drive.
“I don’t think we cannot ignore the political noise. I think the market is quite sensitive about this political noise emerging, particularly on the issues of public policy,” BSP deputy governor Diwa Guinigundo said in a television interview.
“We continue to make the point that investors are here to take advantage of the opportunities available in the Philippine economy and the fundamentals have not changed. Their consideration, their calculus should not change,” he added.
Guinigundo said there was no reason for the peso to weaken given strong fundamentals. He said the recent decline was due to concerns over the Federal Reserve’s policy tightening pace.
“These are sentiments that are, maybe, dominating the better and the stronger market fundamentals of the Philippine economy,” he said.
The peso breached the key P50 per dollar level in February and has hovered at its lowest levels in 10 years. It averaged at P50.209 in early trading Monday.