Metro Manila, Philippines – President Ferdinand Marcos Jr. appealed to the people not to panic over the peso’s decline past ₱64 per US dollar, assuring the public that the government has sufficient resources to defend the local unit.
“First of all, do not take it with alarm. Don’t panic. It is an effect of, really, of still the rising prices of oil and subsequently the rising prices of fuel and its effect on the economy,” Marcos told reporters at the New Bilibid Prison Reservation in Muntinlupa City on Wednesday, Oct. 28.
The peso closed on Wednesday’s trade (Oct. 28) at ₱64.025 per dollar, slightly regaining from ₱64.17 the day prior.
The president attributed the peso’s weakness partly to rising global oil prices and the strengthening greenback, saying the government would continue taking measures to prevent further depreciation.
“We have all the tools to defend the peso, we have all the means to defend the peso, and with that in mind, we will continue to do all that we can to make sure that the value of the peso does not continue to go down, especially relative to the dollar,” he said.
Marcos said the foreign exchange reserves remained healthy and could be used to support the peso.
“The dollar is also becoming very strong. But nevertheless, we have the means, as I say. Our foreign exchange reserves are healthy and diyan tayo kumukuha para idepensa yung peso,” Marcos added.
[Translation: That is where we draw resources to defend the peso.]
Marcos did not specify what additional measures the government would undertake or how much of reserves could be used to prop the peso up.
The peso’s depreciation raises concerns about the cost of imported goods, particularly fuel, which could put additional pressure on consumer prices.
Marcos acknowledged that rising prices were largely being driven by supply-side pressures, limiting the effectiveness of monetary policy alone.
“Because the inflation is coming from the supply side. It’s a supply side inflation. So, monetary measures can only go so far,” he said.
The president said the government had limited control over international oil prices but could take steps to bring down food costs.
“Oil, we can do nothing about it. Food, we can and we are doing, again, everything that we can to make sure that the prices of food come down,” he said.
IBON disputes Marcos’ explanation
On the other hand, IBON executive director Sonny Africa challenged the president’s explanation, arguing that the peso’s weakness reflected deeper structural problems in the economy rather than merely external pressures.
“The peso is weak because the economy is weak — we need more and more dollars to import what we don’t produce, but produce less and less to export and earn dollars from,” Africa said.
IBON cited the reliance on agricultural imports, which it estimated at more than $20 billion (roughly ₱1.280 trillion) annually, compared with approximately $9.3 billion (₱595 billion) in agricultural exports.
The group also pointed to imports of manufactured and capital goods, arguing that insufficient domestic production had increased demand for foreign currency.
Africa criticized the administration’s agricultural policies, including what he described as a reduction in the sector’s proposed budget allocation for next year.
“The fault isn’t in the short-term factors being blamed like the US attack on Iran driving up oil prices. It’s in the long neglect of strengthening domestic agriculture and Filipino industry,” he said.
IBON also disputed Marcos’s appeal for calm, warning that continued peso depreciation could worsen household expenses in the coming months.
“Filipinos have reason to panic. As things are, food prices and inflation look set to get even worse through Christmas and coming into the New Year,” Africa said.
