Malacañang on Thursday emphasized that the Marcos administration will not allow the peso to weaken to 60 against the US dollar, even as it maintained there is no urgent need for Bangko Sentral ng Pilipinas (BSP) intervention despite the currency’s recent slide to record lows.
Presidential Communications Office Undersecretary Claire Castro said the government continues to defer to the central bank’s assessment and policy tools, noting that the BSP remains prepared to act if conditions warrant intervention.
“That is still what was discussed for now, and again they will report to the President if intervention is really necessary,” Castro said in Filipino.
She added that the President is keenly monitoring developments in the foreign exchange market.
“The President does not want the exchange rate to reach 60 pesos,” Castro said. “If it increases by 60 pesos, the value of the peso will decrease, our debt will definitely increase because the exchange rate will increase.”
“Let us wait for what will be discussed further and what actions the BSP will take on the matter,” she added.
The PCO official said further depreciation would be detrimental to the broader economy.
The BSP has previously said it allows the peso to be largely market-determined, intervening only to smooth excessive volatility and prevent disorderly market conditions.
