The market is paying for Malacanangs stupidity, cried an exasperated FX trader at one of Manilas domestic banks, referring to the presidential palace. We are already over-regulated and now we are being harassed by the central bank.
This explains the head-spinning freefall of the Philippine peso which reached a 32-month low of 45.60 against the dollar on Tuesday.
Its not about economic fundamentals which are already bad, continues the trader. Its about banks unwilling to trade because of these reporting requirement hassles.
At the Philippine Dealing System PDS, the interbank currency trading market, the peso opened Tuesday at Ps45.40, reached a high of Ps45.60, touched a low of Ps45.37,...