Peso plummets to P52.34 vs dollar
Overseas Filipino workers (OFWs) win but importers lose in this scenario.
The Philippine peso continued its slump on Monday, Feb. 19 as it ended trading at P52.34 against the US dollar. This is a substantial weakening from the P52:$1 finish on Thursday, Feb. 15.
ING Bank economist Joey Cuyegkeng said a “dovish” central bank likely drove the sustained weakening of the peso, alongside a wider trade deficit for the Philippines.
Market perception of “greater tolerance” for a weaker exchange rate among President Rodrigo Duterte’s economic managers is also giving the chicken-egg scenario for the peso weakness, he added.
Dollar remittances will then have a bigger value once exchanged in the peso for families at home to spend, but it also means that imported goods will be costlier.