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BSP says P60 peso-dollar exchange rate possible but 'not soon'

Photo illustration of US dollar to PH peso exchange in this photo taken on September 30, 2022. Gigie Cruz, ABS-CBN News

Article (news)

Jekki Pascual

ABS-CBN News

MANILA -- Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. admitted that it is possible for the peso to depreciate to P60-to-the-dollar, but this is unlikely to happen anytime soon.At the 2026 Annual Reception for the Banking Community in Pasay, Remolona said that the central bank will not automatically defend the peso either, just because the local currency hit record lows in recent weeks. Remolona said it all depends on whether the depreciation is sharp or gradual.“Depende kung paano maging 60? How it gets there,” Remolona told reporters at the sidelines of the event. He added, “Just because it’s 60 doesn’t mean we’ll defend it.”When asked if a P60-to-$1 exchange rate was 60 inevitable, BSP Governor Eli Remolona said &quot;not soon.&quot;The central bank can defend the peso by raising interest rates or selling foreign exchange reserves. The peso hit P59.46 last week and also recorded a historic intraday of P59.50.This Palace has responded to this, saying President Ferdinand Marcos Jr. <a href="https://www.abs-cbn.com/news/business/2026/1/22/marcos-jr-does-not-want-ph-peso-us-dollar-exchange-rate-to-breach-p60-2301" rel="noopener noreferrer" target="_blank">does not want the peso to hit P60</a> because that will increase the country’s debts.The private sector is also cautious of the weakening of the peso. SM Prime, one of the largest companies in the country, is also monitoring this development. SM Prime Chairman of the Executive Committee Hans Sy said some sectors will benefit from the peso’s weakness, like OFW families. He said this could drive retail growth, but there will be sectors which also be negatively affected by it.“With the weakness of the peso, our sales in retail are actually improving. You can see the improvement. But on the other I’m a bit worried about the future--how much impact it will have on other businesses. Because if other businesses are affected, it’s not going to be good for the economy,” Sy told reporters at the sidelines of the BSP event.Meanwhile, Cebu Pacific President Alexander Lao expressed concern about the peso’s weakness, especially since it can affect pricing, which will also affect the low-cost model of the airline.“It’s clearly a concern--the weakening peso. Roughly 70 percent of our costs are in US dollars. We’d have to make adjustments in terms of our pricing if the peso continues to weaken,” Lao said.The peso closed at P59.09 last Friday. It opened at P58.97 on Monday.Sy added that he continues to monitor government response to challenges in the economy, including the controversial flood control issue.“I’m not going to say I’m optimistic or pessimistic, but I’m watching it closely. It’s a bit sad that these things do happen. But can’t change it, so [we] just have to look forward to see how we can improve it,” Sy added.

When asked if a P60 to $1 exchange rate was 60 inevitable, BSP Governor Eli Remolona said "not soon."

When asked if a P60 to $1 exchange rate was 60 inevitable, BSP Governor Eli Remolona said "not soon."