Palace confident BSP can manage weakening peso

Malacañang on Monday expressed confidence that the Bangko Sentral ng Pilipinas is taking the necessary steps to manage the weakening of the Philippine peso amid global economic pressures.

The statement came after BSP Governor Eli Remolona said that a peso exchange rate of P63.50 against the US dollar would still be acceptable, provided the depreciation happens gradually. The local currency is currently trading at around P61.46 per dollar.

Palace Press Officer and Communications Undersecretary Claire Castro said the administration’s economic managers and the BSP are working closely together to preserve macroeconomic stability and protect the purchasing power of Filipinos.

"Ang economic team po kasi at ang BSP po ay nagtatrabaho in sync in maintaining microeconomic stability and safeguarding the purchasing power of the Filipinos, so lahat po ay dapat na gawin," Castro said during a Palace briefing on May 25.

She added that authorities are aware of the various factors contributing to pressure on the peso, including rising global oil prices and broader international economic developments.

"Sa lahat na makakaya ay dapat na gawin para mapigilan ang pagbaba ng value ng peso dahil alam naman natin kung ano ang kinakaharap natin, hindi lang ito lokal na problema kung hindi kumakaharap tayo sa isang global oil prices maliban pa po sa mga panggugulo ng ibang mga grupo sa ating gobyerno. So, ilan lamang ito sa mga factors," Castro added.

The Palace official reiterated the administration’s trust in the central bank’s handling of the situation.

"At naniniwala pa rin po ang ating pamahalaan sa ginagawa po ng BSP," she further said.

Castro also emphasized that the BSP operates independently and continues to monitor international developments affecting currency markets, including movements in United States interest rates, tensions in the Middle East, elevated oil prices, and overall market sentiment.

-Paraluman News