Bank CEO on currency direct exchange

Added On December 2, 2018

Newly launched currency exchanges between the RMB and Filipino peso are expected to ease volatility and facilitate trade between China and the Philippines. 
The president and CEO of the Philippine central bank made the remarks in a recent interview with CNC.
Economy Report has more.
Referring to the recently signed MoU between the Philippine central bank and Bank of China Manila Branch, Tan said "It is a good first step." 
Except for the U.S. dollar, the RMB is the only foreign currency that can be directly exchanged in the Philippines.
According to the Bank of China Manila Branch, the Philippine RMB Trading Community completed the first direct currency exchange between the RMB and peso on November 20.
"The direct exchange between RMB and PHP will alleviate the rate volatility and create more efficiency in the settlement of trades between the two countries. So right now, the cross currency trades are subject to the movements of the U.S. dollars. With the direct exchange between PHP and RMB, we will be able to eliminate some of those volatilities." 
The PHP-RMB spot market will make it easier to exchange the two currencies and help boost trade and business relations between the Philippines and China.
"It will encourage a lot of importers and exporters to denominate their goods and services in RMB and PHP. It gives us a lot of optimism because we always want to have a healthy relationship with our trading partners and our neighbors." 
China and the Philippines have also recently forged advance cooperation agreements aimed at strengthening links between the China- proposed Belt and Road Initiative and the Philippines' long-term vision to build more roads, bridges, railways, ports and telecommunication facilities.
Tan said  RMB-PHP exchanges will not only benefit trade but also facilitate tourism between China and the Philippines, adding that access to both markets will now be improved.