Peso 'abrupt appreciation' likely a pricing feed error: BSP Gov. Diokno


Posted at Jul 21 2021 03:13 PM

MANILA - The Bangko Sentral ng Pilipinas said the abrupt peso appreciation is likely a pricing feed error, following reports of a sudden change in the Philippine peso and US dollar exchange rate for a brief period late Tuesday.

Several social media accounts posted screengrabs showing a drastic change in the peso-dollar exchange rate on Tuesday evening. The source, however, was not Bloomberg or the Bankers Association of the Philippines, BSP Governor Benjamin Diokno said in a statement.

Some screenshots showed the exchange rate was at P43 to a dollar.

"We would like to highlight that the source feed is not Bloomberg nor the Bankers Association of the Philippines (BAP). The official sources are the Bloomberg and BAP only," BSP. Diokno said.

The "drastic drop" could be from the source feed error of several applications, the statement said.

July 20 was also a holiday in the Philippines, therefore markets were shut and there was no live official data source for the market. On holidays, the prevailing official rate will be the rate of the previous business day, he said.

Bloomberg and Reuters' foreign exchange platforms also did not show the drop, the Diokno said, adding that it is unlikely any material transactions were dealt at those rates. 

"That someone would be willing to trade at these off market prices using these apps can warrant further investigation," he added.

The Philippine peso is currently trading at P50.34 to the dollar as of 2:30 p.m. Wednesday. 

Peso 'abrupt appreciation' likely a pricing feed error: BSP Gov. Diokno 1
Peso to the dollar exchange rate based on the Bankers Association of the Philippines website. Screengrab