BSP warns banks against using FX hedges for peso speculation

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) reminded banks to use foreign exchange hedging instruments only for legitimate economic and financial risk management, not for speculative bets on the peso. In Memorandum M-2026-022 dated June 3, the central bank reiterated that banks must use foreign exchange hedging products only for bona fide economic purposes,