NEWSFLASH

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PESO LOSES 5 1/2 CENTAVOS

Manila, Dec. 21, 1997 - The peso fell by 5.5 centavos yesterday, settling at a weighted average of P39.589 to the dollar.

Thursday's average was P39.34 to a dollar.

Trading at the Philippine Dealing System improved, with the volume of transaction remaining high at $148.7 million, lower than the $195 million traded Thursday.

Traders said the Bangko Sentral ng Pilipinas was trading actively, using the $150 daily pool provided jointly by the central bank and the bankers association.

Central bank governor Gabriel Singson said the $150 million daily pool to stabilize the peso-dollar rate is a temporary arrangement and was instituted to ease the artificial tightening in dollar supply.

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