Peso breaches P59:$1 level

The Philippine peso past its all-time low on Tuesday as it breached the P59:$1 level, following concerns over the possible slowdown in economic growth as the country continues to face corruption concerns, particularly on flood control projects.

The local currency hit an intraday low of P59.2:$1, weaker than the all-time low of P59:$1.

“The recent peso depreciation may reflect market concerns over a potential moderation in economic growth due in part to the infra spending controversy, as well as expectations of additional monetary policy easing by the BSP,” the central bank said in a statement.

Flood control projects are now being investigated by both chambers of Congress and an independent commission, after President Ferdinand “Bongbong” Marcos Jr. bared that 20% of the total P545-billion budget for such projects went to only 15 contractors.

The United States Department of State, in its 2025 Investment Climate report earlier this month, flagged what it described as “pervasive” corruption in the Philippines as among the major barriers to foreign investment in the country.

The Monetary Board of the BSP earlier this month cut policy rates by another 25 basis points, with BSP governor Eli Remolona Jr. hinting at further easing.

The central bank also noted that the peso continues to be supported by remittance inflows which continue to bugger external shocks, relatively fast economic growth, low inflation, and ongoing structural reforms.

“The Bangko Sentral ng Pilipinas allows the exchange rate to be determined by market forces,” the BSP said.

“We continue to maintain robust reserves. When we do participate in the market, it is largely to dampen inflationary swings in the exchange rate over time rather than prevent day-to-day volatility,” it added. — RSJ, GMA Integrated News