Philippines-China Tensions Hitting Peso, Central Bank Chief Says
- Peso hit 2-month low in March after water cannon episode
- Some instances of peso weakness came after sea incidents
Eli Remolona
Photographer: Lisa Marie David/BloombergThis article is for subscribers only.
Tensions between the Philippines and China over competing maritime claims have added to pressures on the peso that has slumped to a seven-month low, and “an escalation would be a big concern” for investors, according to the Southeast Asian nation’s central bank chief.
“There’s a risk whenever there’s an incident in the Philippine sea, the peso depreciates a bit,” Bangko Sentral ng Pilipinas Governor Eli Remolona said in an interview on Monday, in possibly the first official confirmation that the escalating South China Sea dispute is already manifesting in the markets.