PESO DIPS TO 35.98, GOVT INTERVENTION FAILS
Manila, Oct. 8, 1997 - Intermittent intervention by the Bangko Sentral (Central Bank) failed to arrest the fast plunge of the peso, which sank to a new low of P35.981 to the dollar before settling at a weighted average of P35.537, a loss of 61 centavos from the previous day's.
Turnover volume stood at $250.75 million.
The continuing fall off the peso has resulted in a rise in interest rates, with the interbank overnight rate shuttling between 50 and 160 percent, for an average of 102.6%.
Bangko Sentral governor Gabriel Singson called the interest rates "crazy" and expressed confidence that the rates will fall soon because of the decision of his office to open a lending window.
Reported by: Sol Jose Vanzi
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