News Brief: Camdessus Welcomes Announcement by the Philippines

IMF News, July 10, 1997

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The Bangko Sentral ng Pilipinas announced that, effective July 11, it will allow greater flexibility of the exchange rate.
The policy change was taken in response to recent turmoil in regional financial markets and speculative pressures.
The policy is described as consistent with the rapid development of the Philippines’ foreign exchange market and its integration into global markets.

Michel Camdessus, Managing Director of the International Monetary Fund, issued a statement welcoming the Philippine announcement.
Within the next few days, he will be asking the IMF Executive Board to approve the authorities’ request for the extension of the current Extended Fund Facility, which was to expire on July 23, 1997.
He has indicated to the authorities that, at that time, he will recommend to the IMF Board that it make available additional financial resources on which the Philippines could draw to support their comprehensive strategy to safeguard macroeconomic stability.

The Management of the IMF strongly commends the Philippine authorities for their timely and decisive action.
Camdessus expressed confidence that the set of measures, in conjunction with the authorities’ resolve to maintain fiscal and monetary discipline, will:
- help protect the Philippine economy from the consequences of instability in regional financial markets;
- contribute to the restoration of more orderly conditions in these markets;
- ensure that the Philippines will continue its impressive economic progress of the recent years.

News Brief: Camdessus Welcomes Announcement by the Philippines — July 10, 1997