Philippines foreign exchange currency, the peso, has lost almost 50% of its value against the US dollar since November, with a sharp rise in the past few months.
Foreign Exchange Benchmark, a trade publication, said that over the past 12 months, Philippine foreign exchange has gained only 15.9%.
The Philippine dollar, which has gained nearly 3% against the dollar over the same period, has only risen by 0.2%.
Foreign Exchange Weekly said that a major factor behind the sharp increase in the peson’s value against US dollar is the rapid rise in China’s foreign exchange reserves.
Foreign exchange reserves have surged in recent years as the country’s economy has become more reliant on China and the global financial system.
China has become the biggest buyer of Philippine exports, which have risen sharply over the last year, making the Philippines the largest foreign market for the Chinese yuan.
Since the beginning of the year, foreign exchange markets have traded between the Philippines and China at close to $2 trillion.
In a bid to stabilize the pesos, the Philippine government is increasing the foreign exchange market access to the Chinese market.
The Philippines is the largest supplier of foreign exchange to China, and a major contributor to the yuan.
But with the pesotrading to be higher, the price of foreign currencies has become increasingly volatile.
The US dollar fell nearly 13% against other currencies over the period of January to June, and the Philippine peso has lost more than 15% in the same time period.
Foreign currency futures in Manila, the Philippines capital, surged by 5.2% on Tuesday.
The price of the Philippine Peso has dropped by nearly 15% over the span of the past year.