This, as the local currency slumped to its lowest level.
On Thursday, October 15, the Philippine peso (PHP) opened slightly at PHP 62.83 to a dollar higher than its rate upon the closing of the exchange the day prior, when USD 1 was equal to PHP 62.87, accorudng to the Bankers’ Association of the Philippines (BAP).
However, it was not an upward trajectory for the peso, as intra-day trading saw it slump and even officially cross the PHP 63 mark for the first time on record, with the lowest being PHP 63.15 to dollar apiece.
Eventually, the peso-dollar exchange would close at the rate of USD 1 is to PHP 63.06.
ADMIN FOCUSED ON ADDRESSING IMPLICATIONS
During a press briefing on Thursday afternoon, Presidential Communications Office (PCO) Undersecretary and Palace Press Officer Claire Castro cited several challenges, including the ongoing crisis in the Middle East, the effects of El Niño and domestic political developments to be affecting the peso’s performance.
“Sa ngayon, patuloy ang krisis sa Middle East. Ito’y ipagdarasal natin na sana ay matapos na. Nakakaapekto po talaga ito sa ekonomiya ng bansa,” Castro said.
She also noted concerns over the effects of El Niño, particularly on farmers and fisherfolk in areas already experiencing prolonged dry conditions.
“So, parte ito ng maaaring makapagdulot ng pagtaas ng dolyar o pagbaba ng value ng peso, plus the political noise na intensyong isinasagawa para masira ang ginagawang pagsisikap ng administrasyon,” she noted.
Castro also mentioned “political noise” and “fake news” that damages the image of the government to encourage investors as another factor.
Noting that the mandate regarding the foreign exchange and performance of the Philippine peso is with the Bangko Sentral ng Pilipinas (BSP), Castro said that the administration is focused on addressing the economic implications of the continued depreciation of the Philippine peso against the US dollar, particularly its impact on Filipino consumers and vulnerable sectors.
