Jump to content

Recommended Posts

Please help me with my international economics IA. 

This is my article.

https://www.straitstimes.com/asia/se-asia/philippine-central-bank-says-ready-to-rein-in-peso-volatility

I'm not sure what exchange rate system the Philippine government is currently using. And I don't understand this bit "Espenilla said the peso's movements were market-driven, adding that the currency continued to draw support from the country's healthy macroeconomic fundamentals."

Please explain the article to me. Thank you, people.

Link to post
Share on other sites

So, the article basically talks about a sudden fall in the value of the peso against the US dollar.

Market-driven, in this case, suggests that the peso is under a freely floating exchange rate system, but the article talks about intervention by the central bank to counter the volatility (sudden fluctuations), so this actually suggests a managed floating exchange rate system.

You can start by talking about the impacts of a highly volatile currency on the Philippines' economy and then possibly mention the ways the central bank could counter this and the effects of countering the volatile currency on international trade and macroeconomic health in the Philippines.

If it is still hard to understand, I recommend that you change your article 

 

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...