Goldman sees P40 to $1 exchange rate
MANILA, Philippines - Goldman Sachs expects the peso to average 40 to the US dollar in the next 12 months, as faster growth draws more foreign investments.
That's about 7% stronger than the current level of 43 to the dollar.
Goldman is the latest financial institution to raise its growth forecast for the Philippine economy. It is now projecting a 6.8% growth rate from an earlier forecast of 5.5%.
Goldman adds local companies will likely step up foreign acquisitions to complement domestic expansion.
“What the Philippines needs to do is to stay the course it is in right now. Continue to do what you’re doing right now, delivering on the promises on macro policies,” Tim Leissner, vice chairman for investment banking division for Asia ex-Japan, said. -ANC