MANILA -- Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Friday the peso is currently at "fair value" against dollar and will likely trade in the P51 to P54 range next year.
The peso is currently among the three strongest currencies in the region, led by the Thai baht, Diokno said in an exclusive interview with ANC.
"Right now, we are happy where we are. It’s not very attractive for the exporters but what can we do, the dollars keep coming in," he said. "Right now it’s a fair value, determined by supply and demand."
"They [macroeconomic planners] are saying the peso will be between P51 to 54, so that’s the range," he said.
Tourism receipts, business process outsourcing earnings and foreign direct investments help lift the peso, Diokno said. An acceleration in imports due to infrastructure projects could push it to P54 to the dollar, he said.
The peso was trading at P50.72 to the dollar at noon Friday from Thursday's close of P50.64. It strengthened in recent weeks due in part to Christmastime remittances from overseas Filipinos.
Analysts said the peso could weaken at the start of 2020 due to imports. The Development Budget Coordinating Committee set its foreign exchange assumption at P51-P54 for 2020 to 2022.