To control capital flight and ease the pressure on its weak peso, the Philippine central bank is investigating a proposal to lower the limit on banks' open foreign exchange position, according to Reuters.

Tetangco said the central bank continued to study various measures aimed at improving dollar liquidity in the market.

The proposal aimed to lower banks' dollar overbought and oversold limits, or the ceiling on allowed foreign currency purchases and sales from the electronic dealing system, to $20 million from the current $50 million or 20% of unencumbered capital, whichever is lower.

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