The Bankers Association of the Philippines (BAP) has launched the US dollar-peso cross currency swap market, aiming to empower banks in the Philippines to effectively handle their exposure to exchange rate fluctuations.
With this cross currency swap market, banks will have the means to navigate the risks associated with fluctuating exchange rates between the US dollar and the peso.
By engaging in these transactions, banks can strategically manage their positions and optimize their currency exposures.
This move is expected to foster greater stability and confidence in currency-related operations within the Philippines.
Major local institutions, including China Banking Corp., Rizal Commercial Banking Corp., Robinsons Bank Corp., and Union Bank of the Philippines, along with foreign banks such as Mizuho Bank Ltd., MUFG Bank Ltd., and Australia and New Zealand Banking Group (ANZ) have enrolled in the initiative to participate in the US dollar-peso cross currency swap market.