There is a story on BusinesWorld Online reporting that Moody’s has downgraded the banks in the Philippines. I’ll admit this story is complex and I didn’t fully understand it. At the same time, they said the individual banks are healthy but there are “systemic risk” which makes the bank more risky than they have been.
It seems to be related to the Philippine Central Bank reluctance to intervene in the markets in the past and the slowed economic growth putting the central bank in a weakened position to act.
I don’t think this is highly significant to most expats but if your one of the lucky ones with serious money in Philippine banks it could matter to some extent to you. Bangko Sentral ng Pilipinas (Philippine Central Bank) has downplayed the downgrade.
This, I think would tend to lower the value of the peso though. As always, one must look at all the factors that determine the value of a currency in relation to another currency.
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