Philippine peso rises vs dollar: ₱1,518 less for every $500 remitted

Manila: The peso climbed further to ₱55.493 per $1 on Monday (May 26), its strongest level in almost two years against the US dollar.

The rise is buoyed by a perceived policy continuity despite a Cabinet shakeup, while the dollar has continued its slide and uncertainty over tariffs has caused a downside pressure on oil. 

The Philippine currency has so far averaged at ₱55.659 per dollar during the month of May 2025, 5.1% higher than the average a year ago, based on central bank data.

That means overseas Filipino workers (OFWs) sending money to loved ones home would get ₱1,518 less for every $500 sent.

Low crude oil prices are also benefiting the Philippines, a net fuel importer, as it helps narrow its balance-of-payments deficit.

The Bangko Sentral ng Pilipinas (BSP) had signalled earlier this month that authorities are unlikely to intervene to curb the peso’s appreciation.

President Ferdinand Marcos Jr. has decided to retain his core economic managers, providing a signal of policy continuity to investors even as a broader Cabinet reshuffle unfolds.

The announcement came on May 23, a day after 52 officials submitted courtesy resignations in response to a directive from the Chief Executive.

Despite the reshuffle, Bersamin emphasized that the President has chosen to keep his full economic team intact.

Those retained include Finance Secretary Ralph Recto, Trade Secretary Cristina Roque, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan, Budget Secretary Amenah Pangandaman, Presidential Adviser for Investment and Economic Affairs Frederick Go.

Growth concerns

Nonetheless, growth concerns remain a headwind for the peso, as the nation’s 5.4% economic growth in the first quarter undershot economists’ estimates.

This underscores the challenges the economy faced even before the US tariff shock.

[With inputs from Bloomberg]