Palace attributes peso's all-time low vs US dollar to global, domestic factors

January 16 ------ Malacañang has attributed the Philippine peso's all-time low against the US dollar to several global and local developments, including the tension between the United States and Venezuela and the investigation on the anomalous flood control projects.

"Ang pagtaas ng piso kontra dolyar kamakailan ay dulot ng mga pandaigdigang at lokal na mga kaganapan (The recent movement of the peso against the dollar is due to both global and local developments)," Palace Press Officer and Communications Undersecretary Claire Castro said in a briefing on Thursday, Jan. 15. "Una dito ang paglakas ng dolyar, nariyan din ang ispekulasyon kung magbababa ng interest rate ang US Federal Reserve, tensyon sa pagitan ng US at Venezuela, gayundin ang pagbabantay ng ating merkado sa pagkilos ng ating ekonomiya (First is the strengthening of the US dollar, speculation on whether the US Federal Reserve will cut interest rates, tensions between the United States and Venezuela, as well as the market’s close monitoring of movements in our economy)," Castro added.

The Philippine peso depreciated to a historic low of P59.44 against the US dollar on Wednesday. Despite this, the Bangko Sentral ng Pilipinas (BSP) said "there is no need for intervention" yet. Castro, however, assured that there are regular meetings between the Bangko Sentral ng Pilipinas (BSP) and President Marcos amid the developments. The BSP, she added, continues to closely monitor the peso–dollar exchange rate so it can act appropriately if necessary.

"Sa ngayon, kampante ang ating Central Bank na hindi pa sila dapat magkaroon ng intervention (For now, the Central Bank is confident that there is no need for intervention)," Castro said. "Upang maibsan ang anumang epekto ng paghina ng piso kontra dolyar, kabilang sa mga hakbang ng ating gobyerno ay ang pagsigurong pagbagal ng pagtaas ng mga bilihin, pagsuporta sa investments at ang pagpapalakas sa mga sektor ng ating ekonomiya (To mitigate any impact of the peso’s weakening against the dollar, the government’s measures include ensuring a slowdown in the rise of prices, supporting investments, and strengthening key sectors of the economy)," Castro added.

The Palace official also cited the ongoing investigation into anomalous flood control projects as among the factors affecting the low peso-dollar exchange. "Nakakaapekto po ito at daraanan po talaga ang sitwasyon na ito. Bagama’t ganyan ang magiging consequence, minabuti pa rin po ng Pangulo na linisin po ang gobyerno laban sa maanomalyang flood control projects, laban sa mapang-abusong paggamit ng pondo ng bayan (This has an impact, and we will inevitably go through this situation. Despite these consequences, the President has chosen to clean up the government, addressing anomalous flood control projects and the abusive use of public funds)," Castro said.

"At kung hindi po gagawin ‘to ng Pangulo, hindi po siguro masisimulan ng iba. Ang nais po ng Pangulo ay maging transparent at maipakita sa taumbayan na ginagawa ng gobyerno ang paglilinis ng pamahalaan laban sa korapsyon (If the President does not do this, it is unlikely that anyone else would start it. What the President wants is transparency and to show the people that the government is taking action to cleanse itself of corruption)," Castro added.

Source: mb.com.ph