(Updates with peso in fourth paragraph.)
Oct. 26 (Bloomberg) -- The Philippine central bank will ask lenders to set aside more capital to cover non-deliverable currency forwards, Governor Amando Tetangco said today
Bangko Sentral ng Pilipinas will keep a plan to impose a 187.5 percent market-risk weight on NDFs, Tetangco said in an e- mail response to questions in Manila. “It’s a macroprudential measure designed to address possible systemic risk,” he said.
The central bank will remain mindful of risks to inflation, such as uneven capital flows that may fuel volatility in foreign-exchange markets, Tetangco said yesterday.
The peso, which reached a three-year high of 41.903 per dollar on Aug. 1, has advanced 0.9 percent this month.
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