‘Don’t panic’: Marcos vows to defend Philippine peso after slide to record low

President Ferdinand Marcos Jr vowed on October 28 to continue defending the weakening Philippine peso, which had reached a new record low that week. Speaking to reporters after a meeting with central bank and government officials, Marcos assured the public that his administration would take all necessary steps to prevent further decline of the currency's value.

The Philippine authorities have already implemented several measures, including raising interest rates multiple times and deploying foreign reserves, to alleviate the impact of the weak peso. However, the peso has dropped over 8% against the US dollar, hitting its lowest level of 64.20 per US dollar on October 27, before slightly recovering to 64.025 by October 28.

Marcos attributed the currency's decline to rising oil prices, which have led to increased fuel costs and negatively affected the overall economy. He urged the public not to panic, emphasizing that the government's commitment to defending the peso would remain steadfast. Despite the president's reassurances, the currency's weakness is likely to persist due to ongoing geopolitical uncertainties, such as the Middle East crisis, according to Jonathan Ravelas, a senior adviser at Reyes Tacandong & Company.

Ravelas suggested that remittances and additional interest rate hikes by the central bank could help slow down the peso's depreciation. To address the negative effects of a weak currency, the government plans to provide subsidies and other measures to alleviate the impact of El Niño weather patterns and the conflict in the Middle East, including a price freeze on basic goods until the end of 2026.

Marcos attributed inflation to supply-side factors, stating that monetary measures alone could only go so far, and called for additional efforts to bring down food prices.