Peso Pressure Alert: Experts Say PH Needs Bigger Fixes, Hindi Band-Aid Lang
Philippine peso — rewritten from The Manila Times.
Economists are warning that the Philippines needs longer-term fixes as the peso stays weak and everyday costs keep climbing. The main concern is that a softer peso makes imported fuel and food more expensive, which eventually hits households already dealing with high prices.
UnionBank chief economist Ruben Carlo Asuncion said the currency slide is being pushed more by external shocks than by local weakness. He pointed to higher oil prices and a stronger US dollar linked to the conflict in the Middle East, saying the exchange rate is acting like a shock absorber while global markets stay tense.
Other economists echoed that view. Security Bank’s Robert Dan Roces said the bigger issue is not a collapse in Philippine fundamentals, but the added peso cost of fuel imports, subsidies, and debt servicing. He said the focus should be on managing volatility, not obsessing over defending one exact exchange rate level.
Rizal Commercial Banking Corp. chief economist Michael Ricafort also said the Bangko Sentral’s priority remains price stability, while government support should stay targeted and temporary. He noted that past administrations leaned on subsidies for transport workers, fisherfolk, and agricultural sectors instead of broad tax moves that could strain public finances.
The debate comes as fuel prices in the country have surged past P100 per liter and the government scrambles to secure more supply. President Ferdinand Marcos Jr. said the country has enough crude oil until June 30 and will continue looking for more suppliers, but economists say real relief will require deeper steps like energy diversification and stronger foreign inflows, hindi lang short-term damage control.
Source: The Manila Times
