Peso Weakens to ₱57.71 Per Dollar — OFW Families Get More Pesos But Everything Costs More Too
The Philippine peso traded at ₱57.71 per US dollar on Monday, March 2, reflecting continued weakness as the Middle East conflict drives investors toward safe-haven currencies like the US dollar. The peso has been under pressure for several weeks now, and the Iran crisis has only intensified the trend.
For OFW families receiving dollar remittances, the weaker peso means more pesos per dollar sent home — a small silver lining. A $500 remittance that would have yielded about ₱27,500 a few months ago now converts to approximately ₱28,855. But that extra cash is quickly eaten up by rising prices.
The irony isn't lost on anyone: the same Middle East crisis that's fattening remittance conversions is also driving up fuel, food, and electricity prices in the Philippines. Gas prices are going up ₱1.90 per liter this week, diesel by ₱1.20, and those costs cascade through the entire economy.
Economists had been projecting the peso to average around ₱58.88 per dollar in early 2026, and the current rate suggests we're heading in that direction — or possibly overshooting. If oil prices spike to $85-$90 as analysts predict, and the dollar strengthens further from global risk aversion, the peso could face even more downward pressure.
The BSP has signaled it's monitoring the situation closely and has tools available to prevent disorderly currency moves. But with interest rate cuts already in the pipeline to stimulate growth, the central bank faces a classic dilemma: cut rates to boost the economy, or hold to defend the currency and contain inflation.
Source: PhilNews
