NEWSFLASH

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PESO CLIMB STOPS, RATE DIPS TO P42.41=$1

Manila, Jan. 31, 1998 - The peso yesterday ceased its 3-day surge and slipped 58.3 centavos against the US dollar, settling to an average of P42.41/dollar as corporate demand picked up in the Philippine Dealing System.

Trading at the PDS was light at $143.5 million as the peso moved between P42.9 and P41.95 to the dollar.

Local bank officials said banks are discouraged from unloading their dollars at the PDS because of continued volatility in currencies of the region.

The currency crisis has prompted the Philippines to enter into bilateral agreements with either Thailand or Malaysia on an ambitious currency-to-currency trading that will require countries to use their own currencies instead of the dollar in their transactions with one another.

The scheme, initially intended to include Indonesia, the Philippines, Malaysia and Thailand, will begin without Indonesia, which is experiencing a very unstable currency and political climate.

The Bangko Sentral is being eyed as a major overseer of the trading scheme.

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