NEWSFLASH

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PESO BREACHES P45, AVERAGES AT P43.36/$1

Manila, Jan. 25, 1998 - The continued fall of the Indonesian rupiah and heavy selling by local banks drove the peso down to as low at P45.018 before ending yesterday with a weighted average of P43.36 at the Philippine Dealing System.

A bank officials said the Indonesian rupiah fell to 15,000 at one point, causing panic and speculation across markets in Asia, including the Philippines.

Some traders claimed the central bank intervened by selling dollars yesterday through swap arrangements with foreign banks to provide dollar liquidity and arrest the falling peso. But this was denied by Bangko Sentral ng Pilipinas governor Gabriel Singson.

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