As such, Asian financial markets have suffered from high volatility caused by the development of global capital flows, which is more or less the same problem they experienced in the Asian Financial Crisis. The background to this is that the market infrastructures, such as those of bond markets, remain less developed.
Finally, on the external sector: the BSP will remain supportive of policies that will help strengthen the economy’s resilience to external shocks, including that of maintaining a market-determined exchange rate, keeping a comfortable level of reserves, and keeping the country’s external debt manageable.