The Philippines’ strong macroeconomic fundamentals continue to support the peso, which has remained stable in the last five years and continues to be resilient amid the pandemic. It is among the few Asian units that continue to appreciate against the greenback.
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno attributed this positive development to the impact of a benign inflation environment, strong and resilient banking system, prudent fiscal position, and sufficient level of international reserves.
Diokno said that while the pesos is expected to be hurt by the drop of remittance inflows from overseas Filipino workers, it is seen to remain strong because of favorable investors’ sentiments.
“The peso is also expected to benefit from the gradual reopening of the economy amid ample policy support coming from the fiscal and monetary authorities,” the central bank chief added.