PH peso drop to continue in 2022
Analysts are forecasting the Philippine peso to depreciate further against the United States dollar this 2022, ending the year with P 51-52:$1, as the economy recovers.
Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael Ricafort said that further economic re-opening could bring more importation activities and infrastructure spending in the country — particularly in the reconstruction efforts for typhoon-hit areas.
He added that “election-related leads could also partly determine the direction of the exchange rate …”
Ricafort noted that the continued growth in the country’s structural inflows — including OFW remittances (over $30 billion/year), Business Process Outsourcing (BPO) revenues (also $30 billion/year), Philippine offshore gaming operations revenues, foreign tourism receipts, and foreign investment — could “offset the positive factors” for the Philippine peso.
Japan-based MUFG Bank also expects the Philippine peso’s downward trend to continue in 2022, with a P51.500:$1 exchange rate outlook.
MUFG said that this will be brought on by the larger trade deficits driven by stronger domestic demand, as well as a higher import value of oil.
Meanwhile, the Philippine government is expecting the peso-US dollar exchange rate to be P48-53:$1 in 2022 after it closed the previous year at P50.99 to the US dollar.
