Finance Secretary Cesar Purisima Wednesday said he expects the Philippine peso to continue to strengthen against the U.S. dollar because of the country's growth prospects.
The peso ended 2011 at PHP43.84 against the U.S. dollar, the same level it closed at in 2010. The peso appreciated to PHP42.08 to the dollar last week and was at PHP42.64 late Wednesday.
Purisima told reporters the structural strength of the country's current account, due to the steady stream of dollar remittances from the still-growing business process outsourcing industry and millions of Filipinos working overseas, as well as the tourism industry, is also expected to prop up the peso.
The government's economic growth forecast of between 5.0%-6.0% this year assumes an exchange rate of between PHP42 and PHP45 against the U.S. dollar.
Purisima, a member of the central bank's policymaking Monetary Board, said the bank will continue to let market forces determine the exchange rate.
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