Peso bills PHP peso dollar
Image Credit: Gulf News | Jay Hilotin

Manila: Remitters, among them millions of overseas Filipino workers (OFWs), can get more bang for the buck in the local currency as the peso dropped on Monday (August 22), closing at Php55.979, from the previous close of Php55.856 on Friday (August 19), according to central bank data.

Western Union data, however, shows the peso slid to Php56.24 against the US dollar on Monday, close to the 17-year low of Php56.30 hit on July 22, 2022. 

This means an overseas Filipino worker who sends money home get an extra Php683 for every $100 they remit today, compared to year-ago level of $49.41 vs $1 (on July 7, 2021).

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The peso hit its 17-year low on July 22, 2022 when the local currency hit Php56.295 vs $1.

On Monday, official data shows that Bangko Sentral ng Pilipinas (BSP) sold the US greenback at Php56.20 per US$1 and bought at Php55.70 per $1.

Peso's slide

This week, the Philippine currency is seen to continuing its slide in value against the dollar as market players anticipate US inflation to remain high, increasing the likelihood of a US Federal Reserve interventionby raising policy rates. An annual global central bankers’ conference is due on Friday.

Analysts say investors expect a more hawkish US Federal Reserve keen to reign in US inflation, by raising policy rates.

The BSP announced Thursday that it would increase its benchmark overnight borrowing rate by 50 basis points to 3.75 per cent, effective Friday (August 19), and its corresponding lending rate by the same amount to 4.25 per cent.

The Philippine currency closed at Php55.93 vs US$1 on Friday (August 19), losing 4.2 centavos from its Php55.888 close on Thursday (August 18), data from the Bankers Association of the Philippines showed.