Peso all-time low due to flood control probe, Palace says

Malacañang on Thursday said the Philippine peso hitting an all-time low at P59.44 to $1 could be attributed to the investigation on the anomalous flood control projects initiated by President Ferdinand ''Bongbong'' Marcos Jr.

At a Palace press briefing, Palace Press Officer Undersecretary Claire Castro said the President ordered the investigation of the alleged anomalies despite the consequence. 

''Tandaan natin na nabanggit din po na isa sa mga naging reason dito ay ang patuloy na pagpapaimbestiga ng mga maanomalyang flood control projects. Nakakaapekto po ito at daraanan po talaga ang sitwasyon na ito,'' Castro said. 

(Let's remember that one of the reasons is the continuous investigation into the anomalous flood control projects. This will really affect our exchange rate.)

''Bagama’t ganiyan ang magiging consequence, minabuti pa rin po ng Pangulo na linisin po ang gobyerno laban sa maanomalyang flood control projects, laban sa mapang-abusong paggamit ng pondo ng bayan,'' she added. 

(Despite the consequence, the President still chose to cleanse the government against anomalous flood control projects and from abusive use of funds.) 

She also said global and domestic issues contributed to this rate, including the tension between the United States and Venezuela.

''Ang [paghina] ng piso kontra dolyar kamakailan ay dulot ng mga pandaigdigang at lokal na mga kaganapan. Una dito ang paglakas ng dolyar, nariyan din ang ispekulasyon kung magbababa ng interest rate ang US Federal Reserve, tensiyon sa pagitan ng US at Venezuela, gayundin ang pagbabantay ng ating merkado sa pagkilos ng ating ekonomiya,'' Castro said. 

(This weaker peso was due to global and domestic issues. There's the speculation on the lower interest rate of the US Federal Reserve, the tension between the US and Venezuela, and the movement in our markets.)

The local currency closed at P59.44:$1 on Wednesday, depreciating by 9.9 centavos from Tuesday’s finish of P59.341:$1, and breaking the previous record of P59.355:$1 on January 7.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort attributed this depreciation to the reduction of the target spending on infrastructure to 4.3% of the gross domestic product from 5.1% previously, citing need for caution amid the corruption concerns.

Castro, meanwhile, said the Bangko Sentral ng Pilipinas continues to monitor the peso, and vowed to address this once needed. She added that at present, the BSP sees no need to intervene amid the weaker peso. 

''Ang Bangko Sentral ng Pilipinas ay patuloy na binabantayan ang lagay ng palitan ng peso kontra dolyar upang makakilos ito nang tama kung kinakailangan. Sa ngayon, kampante ang ating Central Bank na hindi pa sila dapat magkaroon ng intervention,'' Castro said.

(The Bangko Sentral ng Pilipinas will continue to monitor this so it can act accordingly. At present, the Central Bank is confident that it doesn't need any kind of intervention.)

''Upang maibsan ang anumang epekto ng paghina ng piso kontra dolyar, kabilang sa mga hakbang ng ating gobyerno ay ang pagsigurong pagbagal ng pagtaas ng mga bilihin, pagsuporta sa investments, at ang pagpapalakas sa mga sektor ng ating ekonomiya,'' she added. 

(To ease the impact, the government ensures a slower increase in the prices of goods, giving support to investments, and strengthening the economy.)

The local stock barometer PSEi fell by 0.29% to 6,389.81, while the broader All Shares declined by 0.06% to 3,635.94.—AOL, GMA Integrated News