Manila: Continuous improvements in governance policies to attract foreign investment are expected to buffer the Philippine peso against its current weakness against the United States dollar, according to an economist.
According to Philippines News Agency, Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort stated that predicting the future level of the local currency remains challenging. He explained that the peso's movements are largely influenced by the Bangko Sentral ng Pilipinas (BSP) intervention and efforts to smoothen market volatility. Monetary officials have clarified that the central bank engages in currency trading not to set a specific exchange rate but to mitigate extreme fluctuations.
On Thursday, the local currency ended almost unchanged against the greenback, closing at PHP62.53. Ricafort emphasized the importance of robust trade strategies to support the local currency. He highlighted the need to increase exports by diversifying export products and markets, as many neighboring countries in ASEAN and Asia are net exporters.
The Department of Trade and Industry (DTI) is actively working to provide Filipino entrepreneurs with additional market access for their products. In 2025, the country recorded record-high export growth, expanding 15.3 percent year-on-year to USD84.48 billion. This upward trend continues, with the end-July export level rising 12.9 percent to USD54.92 billion, as per data from the Philippine Statistics Authority. This growth has already surpassed the government's targets for goods and services exports this year.
Furthermore, Ricafort urged consumers to prioritize locally produced items over imported goods to reduce dollar outflows and support the peso. He also stressed the need to reduce the country's reliance on debt denominated in U.S. dollars and other foreign currencies, citing risks of foreign exchange losses based on past crises.
Ricafort also advocated for accelerating renewable energy sources such as solar, wind, geothermal, hydro, waste-to-energy, and nuclear, along with increasing the use of electric vehicles. These measures aim to structurally reduce dependence on imported oil, fuels, and petroleum.
