BSP Governor Eli Remolona Jr. said the central bank is not raising rates to defend the peso and maintains a hands-off approach to the currency. The BSP has raised rates at its last four policy meetings, bringing the key policy rate to 5.50 percent, and may end its tightening cycle after its 22 October meeting. Gross international reserves fell to $99.5 billion at end-September, the lowest since 2023, while the balance of payments deficit widened to $9.1 billion and is projected at $9.2 billion this year due to elevated oil and commodity prices. FDI inflows fell 44.1 percent year on year to $689 million in July, while cash remittances from overseas Filipino workers rose 1.9 percent to $3.03 billion in August. The BSP is also tightening its risk-based capital framework for banks by adopting a new Basel III standard.
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The Philippine peso hit a record-low close of ₱63.52 per US dollar for a third consecutive session, while the PSEi fell 0.72% to 5,779.73. BSP Governor Eli Remolona Jr. said the central bank is not hiking rates to defend the peso and maintains its hands-off approach to the currency. Gross international reserves fell to $99.5 billion at end-September, their lowest monthly level since September 2023.
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- Peso slides to new low on dollar strength - BusinessWorld Online
The Philippine peso closed at a record low of P63.09 per dollar on Monday, down 10.5 centavos from Friday's P62.985, as safe-haven demand tied to geopolitical risks kept the greenback strong. The level surpassed the previous all-time-low close of P63.06 on Oct. 15, and the peso has depreciated 6.82% year to date. Analysts cited elevated global crude prices as a driver of dollar demand and noted the peso was weaker ahead of the BSP's policy meeting on Thursday, where 20 of 22 economists in a BusinessWorld poll expect a fourth straight 25-basis-point hike. Philippine Institute for Development Studies fellow John Paolo R. Rivera said the bigger concern is prolonged depreciation that feeds inflation and weakens household purchasing power, with the peso seen between P63 and P63.20 on Tuesday.
- Peso hits record-low 63.06 vs greenback
The Philippine peso closed at a record-low 63.06 per US dollar on Thursday, breaching 63 for the first time as the Middle East war continued to pressure the currency. The peso has weakened about 8.6% from its February 28 close of 57.66, shortly before tensions escalated. Philippine headline inflation accelerated to 7.2% in September, which economists said could prompt further Bangko Sentral ng Pilipinas rate hikes, while Brent crude remained above $100 a barrel. Meanwhile, the PSEi rose 45.94 points, or 0.82%, to 5,663.17 on bargain hunting, and foreign investors were net buyers of P140.50 million.
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