Year of the weak peso: It spells good news for OFWs — but will it last?
Peso declines further from May 2025 peak, though movements remain relatively modest
Manila: Filipino families relying on overseas remittances have enjoyed a financial boost in recent months, thanks to the continued weakness of the Philippine peso against the US dollar.
Exchange rate data from July 2024 to July 2025 shows that the peso has hovered at historically weaker levels, hitting a peak monthly average of ₱58.695 per dollar in November 2024 before gradually settling to ₱56.345 in July 2025.
Silver lining
This exchange rate trend has been a silver lining for Overseas Filipino Workers (OFWs), whose dollar remittances translate to more pesos at home.
But with signs pointing to a slight strengthening of the peso in recent months, the question on many OFWs' minds is: should we wait or send money now?
The year of the weak peso
The peso began weakening significantly around August 2024, averaging ₱58.484 to the dollar, and stayed near that level until the end of the year.
The depreciation peaked in November 2024, with the exchange rate averaging ₱58.695, the most favorable for remittances during the 12-month period.
Several factors fuelled the trend:
Higher US interest rates, which attracted capital inflows into the dollar
Geopolitical uncertainties, which made the dollar a safe haven
Local inflationary pressures, which reduced the peso’s competitiveness
Remittance boom
For the 2.3 million OFWs sending money back to the Philippines, the weak peso has translated into bigger bang for the buck.
A $500 remittance sent in November 2024 would have fetched around ₱29,347, compared to just ₱27,812 in May 2025 when the peso strengthened slightly.
In total, the Bangko Sentral ng Pilipinas (BSP) reported a notable surge in remittance volume during this period, as many OFWs took advantage of the favourable exchange rates to send larger amounts or advance holiday remittances.
A turning tide?
Starting January 2025, however, the peso began to stabilise and even showed slight appreciation. The average for June 2025 dipped to ₱55.625, the strongest peso in the past year.
By July 2025, it remained relatively stable at ₱56.345.
This recent shift could signal a reversal in the trend. Analysts attribute the stronger peso to:
Improved Philippine current account balance
Lower global oil prices, easing import costs
More stable macroeconomic conditions in the Philippines
So, should OFWs wait?
Not necessarily. While the peso has regained some strength, the movements remain relatively modest.
Given the uncertain global economic landscape — including US tariff dynamics, a slower recovery, and geopolitical tensions elsewhere — exchange rate volatility is expected to continue.
OFWs may consider the following strategies:
Staggered remittances: Send smaller amounts over time instead of lump sums, to average out exchange rate risks.
Watch for seasonal trends: Rates tend to improve around year-end holidays, when dollar inflows surge.
Use forex tools: Some money transfer apps and banks allow rate-locking features or alerts when the peso hits target thresholds.
Bottom line
The past year has been one of the most remittance-friendly periods in recent memory.
While the peso appears to be slowly regaining strength, the current levels remain favourable for OFWs.
Those needing to send money now should do so with confidence — but for those with the flexibility to wait, keeping an eye on the rate could yield added value in the months ahead.
(This is for information purposes only, not an investment or forex trading advice.)
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