MANILA — The Bangko Sentral ng Pilipinas (BSP) said it allows the peso’s exchange rate to be determined by market forces, emphasizing that its interventions in the foreign exchange market are meant to temper excessive volatility rather than influence daily movements.

“We continue to maintain robust reserves. When we do participate in the market, it is largely to dampen inflationary swings in the exchange rate over time rather than to prevent day-to-day volatility,” the BSP said in a statement.

The central bank noted that the recent depreciation of the peso may reflect market concerns over a potential slowdown in economic growth, partly due to the controversy surrounding infrastructure spending, as well as expectations of further monetary policy easing.

Despite this, the BSP said the peso remains supported by strong remittance inflows, steady economic expansion, low inflation, and ongoing structural reforms.

“Foreign exchange inflows from business process outsourcing, tourism, and overseas Filipino workers continue to buffer external shocks,” the BSP added.