Economic Planning Secretary Arsenio Balisacan attributed the recent depreciation of the Philippine peso to record lows against the US dollar primarily to external factors, notably the strength of the US currency and rising global oil prices.
In a statement read by Palace press officer Undersecretary Claire Castro, Balisacan said the weak peso reflects overlapping influences beyond the country's control. The unusually strong US dollar has drawn capital toward US assets, away from emerging markets like the Philippines, making the peso weaker as the dollar rises faster.
Balisacan, head of the Department of Economy, Planning, and Development (DepDev), also cited surging global oil prices. The Philippines' reliance on imports has increased dollar demand, widening trade and current account deficits and pressuring the local currency.
"In short, the peso depreciation reflects the rise of demand for dollars (from import payments and servicing of dollar-denominated debt) faster than the supply of dollars (from exports, remittances, and foreign investments)," Balisacan added.
The peso firmed slightly on Thursday after hitting a fresh intraday low, following the US Federal Reserve's decision to keep interest rates unchanged. It rebounded 8.2 centavos to close at 61.485 per dollar, after touching an intraday low of 61.75 per dollar, surpassing the previous record of 61.67 set a day earlier.
Despite the decline, Balisacan said stabilizing the peso primarily falls under the Bangko Sentral ng Pilipinas (BSP), which has sufficient tools—including foreign exchange reserves, policy rate adjustments, and macroprudential measures—to manage volatility.
"Its ammunition is sufficient to prevent excessive volatility," the official added.