NEWSFLASH

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PESO GAINS 62.6 CENTAVOS, TRADES AT P33.90/DOLLAR

Manila, Nov. 12, 1997 - The Bangko Sentral ng Pilipinas expressed confidence that the peso- dollar exchange rate will settle back to P30 by the end of the year, as the peso continues to gain strength at the Philippine Dealing System.

The Philippine currency gained another 62.6 centavos yesterday against the dollar, averaging at P33.907, its strongest level since mid-October.

Central bank governor Gabriel Singson pointed out that the peso appreciation "happened with very minimal government intervention."

"It is now becoming increasingly clear that the peso depreciation had been overly exaggerated and it is only to be expected that it would correct in line with the underlying economic fundamentals," Singson said.