NEWSFLASH

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PESO CLIMBS TO P39.36 PER DOLLAR

Manila, Feb. 12, 1998 - The peso strengthened to P38.35 to the US dollar before closing at P39.369 yesterday, as banks started paring down their prime rates by one percentage point as earlier promised.

The banks' prime rates now hover between 25 and 30%, down one percent from last week's 26- 31%. The 42-day Treasury bills issued by the government fetched a rate of 15.90%, a drastic cut from 20.261% two weeks ago.

At the Philippine Dealing System, total value of transactions reached S206 million, mostly interbank deals in a day marked with little demand for dollars.

Dollar sellers were active for fear of getting burned when the exchange rate continues to favor the peso.

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