NEDA expects peso to stabilize

THE National Economic and Development Authority (NEDA) expects the Philippine peso to stabilize versus the US dollar in the next few months due to a seasonal rise in remittances from overseas Filipinos.

In a press conference on Friday during the Philippine Development Plan for Planners, NEDA Undersecretary Rosemarie Edillon pointed out that the peso’s recent depreciation against the dollar is also “temporary.”

“Historically, this is when we receive many remittances, pamasko na padala (for the holidays),” said Edillon.

The NEDA official added that the current range of P51 to P53 for 2022 and P52 to P55 for 2023 for the government’s peso-dollar exchange rate set in July estimate has not been changed.

Edillon also hopes the consumers “will retain their purchases in the country” as the families of Filipino workers abroad benefit from a stronger dollar.

The weak Philippine peso will also allow local exporters to increase their market share on the global market. Philippine goods are more affordable when the peso is weaker.

“We are hoping our domestic producers and exporters take advantage of this weakness in [the] Philippine peso,” said Edillon.

“If we are able to do that, we increase those gains, and hopefully, that will generate more opportunities and more income for Filipinos,” she added.

For its part, the Bangko Sentral ng Pilipinas earlier said the peso’s volatility is typical in a booming economy.

However, given that the US dollar is used to pay for imports, notably petroleum items, some analysts are still worried about the peso’s depreciation.

The government, Edillon said, is actively pursuing medium-term initiatives to improve domestic food production, which would lessen demand for food imports.

TIZIANA CELINE PIATOS