Peso Weakens to P58.27 Against US Dollar, Weakest Since November 2022

The peso continued to weaken to PHP58.27 against the US Dollar last Tuesday, May 22, 2024 — the lowest since November 2022.

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said in a statement that the depreciation is in line with other currencies in the region, mainly due to the strengthening of the US dollar.

“The dollar continued to strengthen as the Federal Reserve signaled delay in cutting interest rates,” Remolona said.

Remolona added that the BSP is closely monitoring the foreign exchange market.

“The BSP continues to monitor the foreign exchange market but allows the market to function without aiming to protect a certain exchange rate,” Remolona added.

Remolona assured that the BSP will take action to protect the peso when necessary.

“Nonetheless, the BSP will participate in the market when necessary to smoothen excessive volatility and restore order during periods of stress,” Remolona said.

The peso’s decline means importing goods like crude oil and rice becomes more expensive.

However, for families receiving remittances from Overseas Filipino workers (OFWs), the weaker peso means more pesos for every dollar received, which can be beneficial.

Overall, the peso’s depreciation reflects broader regional trends and the global impact of US monetary policy, affecting both import costs and remittance values. (ASC)