Philippine deputy central bank governor Diwa Gunigundo said Wednesday the peso’s decline shows that the country is one of those “markets hit by volatility.”

“Because of this uncertainty, you have people liquidating… there’s demand for US dollars,” Gunigundo explained in a forum on the economic priorities of the Duterte Administration.

The peso closed lower at 48.25 against the US dollar on Wednesday, staying at seven-year lows. It ended at 48.17 against the greenback on Tuesday. Volume at the Philippine Dealing System went down from 666.1 million pesos to 441.2 million pesos.

Gunigundo said that recent declines in peso and stock market “does not indicate that foreigners have already left the Philippine market.”

He said the 48 peso to the dollar still “relatively stronger” compared to the time when then President Gloria Macapagal Arroyo declared a fiscal crisis in October 2005 as the peso hit 55 to 56 against the US currency.

Gunigundo said for the third quarter, the central bank expects “at least six percent real GDP”, with demand expected to remain firm in the third and fourth quarter.

Consumers and businesses are”optimistic” about Philippine growth as shown by the central bank surveys. He added that the banking system is sound. Celerina Monte/DMS