Peso rises to Php57.248 vs US dollar: Winners and losers

Manila: The Philippine peso closed at Php57.248 against the US dollar on Monday (March 17, 2025) its best in nearly five months since October.

Bangko Sentral ng Pilipinas (BSP) data show the peso has so far averaged Php57.488 in March against the US greenback, up from Php58.094 average in February, Php58.391 in January and Php58.448 in December 2024.

Amid a raft of global and domestic developments that supported the Asian currency, the Philippine peso finished the first week of March on a strong note against the US dollar.

The US dollar slid against other Asian currencies recently, the peso included, following Trump’s announcement to delay the 25 per cent tariff on Canadian and Mexican goods and services that are covered by the North American Free Trade Agreement or USMCA until April 2, 2025, when Trump plans reciprocal tariffs.

After the ripple effects of Donald Trump’s presidency rattled markets, the peso emerging as one of the hardest-hit currencies.

The peso was flirting with the Php60-per-dollar mark, keeping analysts on edge. With forecasts predicting a dive to this level by midyear — something straight out of the financial history books — it’s been a wild ride for the currency.

Goldman Sachs Group Inc., Barclays Plc, and Fitch Solutions foresee this breaking point, while DBS Group Holdings Ltd. warns it could dip even further to Php60.8. 

Despite the recent developments surrounding the Manila arrest and extradition to the Hague of former president Rodrigo Duterte, the country's financial sector has shown some resilients.

Recently the BSP reported growth in universal and commercial bank loans growth going at its fastest clip in two years.

In a dramatic turn for the Philippine financial sector, bank lending skyrocketed by 12.8 per cent in January 2025, marking its fastest growth in two years, according to BSP data.

Adding to the momentous news, the Philippines has officially broken free from the Financial Action Task Force (FATF) "grey list", shedding the shadow of increased monitoring after nearly four years.

The grey list, a red flag for global investors, signalled concerns over the country’s efforts to combat money laundering, terrorist financing, and financial crimes.

First placed on the list in June 2021, the Philippines has since fought to overhaul its financial safeguards.

The BSP now hails the country’s exit as proof of its strengthened defenses against illicit finance, a milestone that restores international confidence in the nation’s banking system.

With lending on the rise and a more robust regulatory environment, the Philippine economy is charging ahead — leaving its troubled past behind.

A stronger peso benefits import-heavy businesses and consumers but can hurt exporters, OFWs, and industries that rely on dollar earnings. The BP) monitors exchange rates to keep a balance and avoid extreme fluctuations.

When the Philippine peso appreciates against the US dollar, it means the peso strengthens, and fewer pesos are needed to buy one dollar. This has several effects on different sectors of the economy:

Importers and consumers – Imported goods (e.g., oil, electronics, raw materials) become cheaper, lowering costs for businesses and consumers.
Government debt payments – If the government has foreign debt in dollars, it becomes cheaper to pay back in pesos.
Travellers and students abroad – Filipinos studying or traveling abroad spend less on foreign expenses.

OFW Families – Overseas Filipino Workers (OFWs) sending remittances receive fewer pesos per dollar, reducing family purchasing power.
BPO Sector – Business Process Outsourcing (BPO) companies earn in dollars but pay expenses in pesos, reducing profits.
Exporters – Philippine products become more expensive for foreign buyers, potentially reducing sales.
Tourism Industry – Foreign tourists find it more expensive to visit the Philippines, possibly reducing tourism revenue.