The received doctrine is that three months of import cover is sufficient. In line with the movement of other emerging market currencies, the Philippine peso depreciated by 2.62 percent to P52.37 as of May 31 from its end-2021 level. The BSP keeps its market-determined exchange rate policy and intervenes only to ensure orderly market conditions and prevent excessive short-term volatility in the exchange rate.
Moving on to the banking sector, banks continue to serve as a pillar of strength for the economy. Loan growth expanded at a faster rate of 10.1 percent year-on-year in April, up from 8.9 percent in March. Non-performing loans remained manageable at 4.1 percent of loan portfolio as of March this year.