Another day, another record. On October 27, 2000, the Philippine peso hit another intraday trading record low of Ps51.400 to the US dollar, before closing at Ps51.080 at 4pm when the Philippine Dealing System closed for the day.
The speculators are savagely attacking the peso which is being saddled with the weight of political problems stemming from allegations by a northern provincial governor and self-confessed gambling lord that President Joseph Estrada is on the take.
The volume traded at the PDS was only $46 million, lower than the previous days $58 million and well below the usual volume of $90 million to $125 million in the last two months.
The Bangko Sentral ng Pilipinas plans to introduced administrative controls over the peso including a requirement introduced a few days ago that compels retail forex subsidiaries of banks to produce import invoices for their clients that are asking for more than $10,000.
On Friday, the BSP refused to change the overnight lending rate which is currently 17.25%.
In June 1997, the peso was around Ps26.4 to the dollar. In June 1998 it was around Ps39.50. In June 1999, it was around 37.90. In June 2000, it was around 42.50.