Malacañang: Peso slide driven by Middle East conflict

Malacañang has attributed the continued weakening of the Philippine peso to escalating geopolitical tensions in the Middle East.

Palace Press Officer Undersecretary Atty. Claire Castro explained that these external factors have disrupted global markets and increased economic uncertainty.

“Hindi po natin nais na ganito… ang paghina po ng peso kontra dolyar ay bunsod na rin po ng geopolitical tension na nangyayari po sa Middle East,” Castro said during a press briefing.

Specifically, the instability has impacted oil prices and energy supply routes, which significantly affects the Philippines due to its reliance on imported fuel.

Castro emphasized that the government is aware of the resulting impact on import costs and the broader economy.

She noted that while the situation is driven by forces outside the country's control, the administration of President Ferdinand Marcos Jr. is taking active steps to cushion the impact.

“Talaga pong ito ang maaaring kahihinatnan hanggang hindi po napipigil ang tensyon o ang sigalot sa Middle East,” she added.

These measures include monitoring market developments, supporting affected sectors, and mitigating the effects of rising fuel costs to ensure the availability of essential goods.

The Philippines, which relies heavily on imported fuel, is especially vulnerable to global oil price shocks linked to tensions in the region.

Analysts have noted that disruptions in energy supply routes—particularly through critical chokepoints like the Strait of Hormuz—can have ripple effects on currencies and inflation.

“Alam po natin ang ginagawa ng Pangulo at ng administrasyon na ito upang maibsan po ang impact… at gawin po ang lahat para po maayos ang lahat ng nangyayari,” Castro said.

Marcos recently declared a national energy emergency, citing risks to fuel supply and economic stability.

The Palace said efforts are ongoing to assist Filipinos affected by these rising costs, including overseas workers and local consumers.

-Paraluman News