The highest intraday rate of Philippine peso has reached P59 against US dollar on Thursday, September 29.
The exchange rate has opened at P58.87 and closed at P58.97 according to the Foreign Exchange Summary of the Bankers Association of the Philippines. Both rates are an all-time-low value for the country’s currency.
It can be recalled that President Bongbong Marcos has stated that he will be closely monitoring the low peso value after it has sank to a new record low value of P58 last week.
Read: PBBM monitoring weak peso value – Malacañang
Why is there a devaluation of peso value?
A former economist of the Philippine Competition Commission and a current PhD Econ student of the University of Ottawa explained why the peso has weakened against the US dollar in recent months.
“The major reason is because of inflation and the response of the US Federal Reserve (the equivalent of our Central Bank) to counteract it. In order to combat inflation, the Fed has raised major interest rates, which in turn, has made the US more attractive to investors,” said dela Cruz.
Read: Philippine peso trades at P58 per USD for the first time
What should Filipinos do?
Mr. Muhammad Abu Bakar, a Financial Adviser based in Abu Dhabi advised that Filipinos should invest in tangible assets and avoid keeping money in banks.
“If you are keeping 10,000 dirhams of P100,000 back home, that money is actually not increasing. It’s a loss for you if are keeping currency. But on the other hand, those who will convert their money or bank balances to an asset, for example gold or a land, which will not depreciate a lot, in the end, you will earn money,” said Mr. Abu Bakar.
Read: OFWs advised to buy ‘gold, property’ as Philippine peso sinks further to P57.43 vs US dollar
