The Bangko Sentral ng Pilipinas (BSP) on Tuesday reaffirmed that the peso’s exchange rate is determined by market forces, saying recent movements reflect market sentiment rather than direct central bank intervention.

In a statement, the BSP said it maintains “robust reserves” and that any participation in the foreign exchange market is aimed at tempering sharp, inflationary swings in the peso’s value over time, rather than managing short-term fluctuations.

“The recent peso depreciation may reflect market concerns over a potential moderation in economic growth due in part to the infrastructure spending controversy, as well as expectations of additional monetary policy easing by the BSP,” the central bank said.

Despite the depreciation, the BSP noted that the peso remains supported by strong remittance inflows, steady economic growth, low inflation, and ongoing structural reforms.

Foreign exchange inflows from business process outsourcing (BPO), tourism, and overseas Filipino workers (OFWs) also continue to help cushion the local currency against external shocks, the BSP added.

The statement comes as the peso faces renewed pressure in the foreign exchange market amid global economic uncertainties and local policy developments.