Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno clarified that the sudden “currency crash” in the Philippine peso value against the greenback in some trading platforms, which caused a stir on social media Tuesday, was just an error of the platform’s source feed.
Diokno told reporters on Wednesday that the error was not made on the official source feeds of the country.
On Wednesday, some foreign exchange platforms showed a sudden slip in the Philippine peso value against the dollar, indicating exchange rate values of as low as P42 to a dollar. For reference, data from the Bankers Association of the Philippines (BAP) showed that the peso closed value at P50.35 to a dollar.
“We would like to highlight that the source feed is not Bloomberg nor the Bankers Association of the Philippines. The official sources are the Bloomberg and BAP only,” Diokno said.
“We believe that these applications that showed the drastic drop in the US dollar and Philippine peso rate had an error in its source feed. Yesterday, July 20, was a Philippine holiday and domestic markets were shut. This means that there was no live official data source for the spot market,” he added.
Diokno said that the holiday last Tuesday may also have “exacerbated” the pricing feed error on these certain platforms.
“The rule that we have is that on holidays the prevailing official rate will be the rate of the previous business day. In addition, we had observed various foreign exchange platforms such as Bloomberg and Reuters [which is what the BSP uses for market data sources] and none showed this drastic move,” Diokno said.
“Moreover, we highly doubt that there were any material transactions dealt at those rates as these would definitely be ‘off market’ and would be subjected to internal reviews of these platforms,” he added.
The governor said while the error was not seen on official channels, they can still continue investigation on the matter.
“That someone would be willing to trade at these off market prices using these apps can warrant further investigation,” Diokno said.