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March 05, 2024

Moody’s sees low FX risk for PH banks

The credit rating agency says risks related to foreign exchange is minimal for local banks.

Moody’s Investors Service said that PH banks has minimal exposure in US dollars, thereby reducing the risks on foreign exchange (FX) risks. Moody’s reported that the Philippine banks, along with banks in Indonesia, Vietnam, Chile, Cote d’Ivoire and Guatemala have the “lowest” FX risks compared to other emerging markets. Moody’s cited the low levels of dollars in the system and/or their sovereigns face low risk related to FX repayments and maintain adequate foreign-currency reserves.