Palace, economic team working on managing inflation, peso fall
President Marcos and his economic managers are addressing the impact of a weaker peso on the prices of goods, Malacañang said yesterday, after the local currency hit a record low in the face of rising fuel prices and stronger dollar.
President Marcos and his economic team are taking action to address the effects of a weaker Philippine peso on the cost of goods, following the currency's record low against the dollar. The value of the peso fell to P62.565 per dollar on Wednesday, down from its previous low of P62.40 on Tuesday and continuing a trend of four consecutive days of depreciation.
The Office of the Executive Secretary (OES) stated that managing inflation and foreign exchange is the central responsibility of the Bangko Sentral ng Pilipinas (BSP). President Marcos has been collaborating closely with his economic team to mitigate the inflationary impact of higher exchange rates, including on food, business, logistics, and other prices.
The weakening of the peso is anticipated to raise the prices of imported goods, potentially increasing consumer prices. The government's response began in response to the Middle East conflict, as outlined by the UPLIFT program. This program prioritized spending, reduced non-essential expenditures, and directed resources toward sectors affected by rising prices.
The primary objective of the economic team is to foster economic growth, primarily through productive public spending, according to the OES. The administration's strategy focuses on fiscal discipline and the efficient use of public funds, which includes meticulously reviewing spending proposals and prioritizing programs with significant economic and social returns.
The OES attributed the peso's decline to "brewed US dollar strength and rising global oil prices." The BSP increased interest rates the previous week to anchor inflation expectations and bolster the local currency. The executive secretary's office expressed confidence that the BSP will continue to act decisively based on available data and intervene when necessary to mitigate exchange rate volatility.
The administration's commitment to fiscal discipline and efficient public funds utilization remains steadfast, emphasizing careful spending proposal reviews and prioritizing programs with high economic and social returns.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
