So far, this policy has resulted in containing the volatility in exchange rate movements to within the middle of the range of other regional currencies, although the peso has performed relatively more strongly than in previous years.
In an environment where the movement of the exchange rate determines the financial wealth of different economic sectors and affects different sectors differently, this policy has been determined as fair. Beyond capital flow management policies, the economy has been successful against shocks from external volatilities because of past reforms that have built stronger institutions. What are some of these?