Malacañang has linked the peso’s continued weakness against the US dollar to the greenback’s strengthening and persistently high global oil prices, while saying the Marcos administration is implementing measures to limit the effects of external economic pressures.
Office of the Executive Secretary Ralph Recto said the recent depreciation of the peso was primarily influenced by factors outside the Philippines.
“the recent weakening of the peso was brought about by brewed US dollar strength and rising global prices of oil.”
Recto said the Bangko Sentral ng Pilipinas (BSP) raised its policy interest rate last week partly to keep inflation expectations under control while helping support the local currency.
He added that the central bank is expected to take appropriate action depending on developments in the foreign exchange market.
“Moving forward, we expect the BSP to act decisively based on available data and intervene when necessary to reduce exchange rate volatility,” Recto said on Thursday, September 3.
Recto emphasized that keeping inflation manageable and maintaining stability in the foreign exchange market remain key responsibilities of the BSP.
At the same time, he said the administration is pursuing fiscal discipline and more prudent government spending as it responds to current economic challenges.
“The administration’s approach is focused on fiscal discipline and more efficient use of public funds; this means reviewing spending proposals carefully and prioritizing programs that have high economic and social returns,” Recto added.
President Ferdinand Marcos Jr., according to Recto, has been working closely with his economic managers to address the consequences of the weaker peso and rising prices, particularly those affecting food, businesses, transportation and logistics.
Recto said the government began implementing measures under its UPLIFT program following the escalation of the Middle East conflict, including adjustments in government spending priorities.
“In fact, these efforts began immediately following the start of the Middle East conflict. Under UPLIFT, the government has already begun reprioritizing spending, reducing non-essential expenditures and directing resources toward sectors affected by rising prices,” Recto said.
The administration is also seeking to maintain economic growth by directing additional government resources toward productive public investments, Recto said.
“At the same time, the main thrust of the economic team is to support economic growth, and one way we are doing this is by increasing productive public spending,” he added.
The peso ended trading at ₱62.565 against the US dollar on September 2, extending its record-low performance to a fourth consecutive session.
During a separate Palace briefing on Thursday, Communications Undersecretary and Palace Press Officer Claire Castro said the government is also reviewing how public funds are allocated to ensure spending produces tangible economic benefits.
“So, isa po sa nakikita ng administrasyon na maaaring solusyon ay kailangan na gumastos ang gobyerno sa mga tamang proyekto. Hindi dapat masayang ang ating pondo sa kung anu-anumang pagkakagastusan,” Castro said.
She stressed that stricter discipline in the use of public funds would be important in helping improve the country’s economic conditions.
“So, dapat magkaroon ng disiplina kung paano gagastusin ang pondo para maka-improve po ng ekonomiya ng bansa,” Castro added.
Castro said Marcos continues to consider various measures designed to sustain economic growth despite mounting external pressures.
She also cited the continuing conflict in the Middle East and the Philippines’ dependence on crude oil imports from the region as factors adding to the country’s economic difficulties.
“Nagkataon lamang po siguro na naapektuhan po talaga tayo ng krisis sa Middle East at hanggang sa ngayon po ay nandidiyan pa rin po ang issue patungkol dito at alam din po natin na dependent tayo sa pagkuha ng suplay ng krudo mula sa Middle East at definitely isa ito sa nakakaapekto,” Castro said.
PESO WEAKNESS TIED TO STRONGER DOLLAR, HIGH OIL PRICES — PALACE
Malacañang has linked the peso’s continued weakness against the US dollar to the greenback’s strengthening and persistently high global oil prices, while saying the Marcos administration is implementing measures to limit the effects of external economic pressures.
Office of the Executive Secretary Ralph Recto said the recent depreciation of the peso was primarily influenced by factors outside the Philippines.
“the recent weakening of the peso was brought about by brewed US dollar strength and rising global prices of oil.”
Recto said the Bangko Sentral ng Pilipinas (BSP) raised its policy interest rate last week partly to keep inflation expectations under control while helping support the local currency.
He added that the central bank is expected to take appropriate action depending on developments in the foreign exchange market.
“Moving forward, we expect the BSP to act decisively based on available data and intervene when necessary to reduce exchange rate volatility,” Recto said on Thursday, September 3.
Recto emphasized that keeping inflation manageable and maintaining stability in the foreign exchange market remain key responsibilities of the BSP.
At the same time, he said the administration is pursuing fiscal discipline and more prudent government spending as it responds to current economic challenges.
“The administration’s approach is focused on fiscal discipline and more efficient use of public funds; this means reviewing spending proposals carefully and prioritizing programs that have high economic and social returns,” Recto added.
President Ferdinand Marcos Jr., according to Recto, has been working closely with his economic managers to address the consequences of the weaker peso and rising prices, particularly those affecting food, businesses, transportation and logistics.
Recto said the government began implementing measures under its UPLIFT program following the escalation of the Middle East conflict, including adjustments in government spending priorities.
“In fact, these efforts began immediately following the start of the Middle East conflict. Under UPLIFT, the government has already begun reprioritizing spending, reducing non-essential expenditures and directing resources toward sectors affected by rising prices,” Recto said.
The administration is also seeking to maintain economic growth by directing additional government resources toward productive public investments, Recto said.
“At the same time, the main thrust of the economic team is to support economic growth, and one way we are doing this is by increasing productive public spending,” he added.
The peso ended trading at ₱62.565 against the US dollar on September 2, extending its record-low performance to a fourth consecutive session.
During a separate Palace briefing on Thursday, Communications Undersecretary and Palace Press Officer Claire Castro said the government is also reviewing how public funds are allocated to ensure spending produces tangible economic benefits.
“So, isa po sa nakikita ng administrasyon na maaaring solusyon ay kailangan na gumastos ang gobyerno sa mga tamang proyekto. Hindi dapat masayang ang ating pondo sa kung anu-anumang pagkakagastusan,” Castro said.
She stressed that stricter discipline in the use of public funds would be important in helping improve the country’s economic conditions.
“So, dapat magkaroon ng disiplina kung paano gagastusin ang pondo para maka-improve po ng ekonomiya ng bansa,” Castro added.
Castro said Marcos continues to consider various measures designed to sustain economic growth despite mounting external pressures.
She also cited the continuing conflict in the Middle East and the Philippines’ dependence on crude oil imports from the region as factors adding to the country’s economic difficulties.
“Nagkataon lamang po siguro na naapektuhan po talaga tayo ng krisis sa Middle East at hanggang sa ngayon po ay nandidiyan pa rin po ang issue patungkol dito at alam din po natin na dependent tayo sa pagkuha ng suplay ng krudo mula sa Middle East at definitely isa ito sa nakakaapekto,” Castro said.