NEWSFLASH

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P36.98/DOLLAR, FVR CALLS FOR CALM

Malacanang, Dec. 13, 1997 - As the peso fell to a record P37.36 to the dollar, President Ramos yesterday calmed fears that the weakening currency would further hurt the economy.

Traders said there was a huge demand for dollars, pulling the currency down by 30 centavos to a weighted average of P36.987/dollar from Thursday's average of P36.687.

The currency fell to P37.36 before rising to P36.641, its highest during the trading day. Volume traded was a very low $19.5 million.

But the President said the drop "does not mean that our economy is not good. One must not be apprehensive about what is happening outside. We are affected, but we are bound to recover."

President Ramos said there should be no cause for alarm because our country's economic fundamentals are sound.

"The peso behaved that way because of the collapse of many of the other currencies in the region," he explained.

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