Senator Sherwin Gatchalian on Monday called for political sobriety and responsible discourse to safeguard the economy and restore investor confidence, citing a rise in political rhetoric.
Gatchalian expressed concern regarding the growing political turmoil affecting macroeconomic stability and investor confidence. He highlighted the peso’s significant decline, which reached a record low of P61.721 against the US dollar as of Friday’s market close.
“The cost of all this political chatter is starkly evident in the peso’s performance against the dollar. While external factors are at play, analysts are now citing an ‘uncertainty premium’ attributed to political tensions,” Gatchalian said.
He noted that the current political situation is dampening confidence among investors both in the region and globally.
“We cannot allow this to continue. The country’s economic growth and the welfare of our people are at stake,” Gatchalian said.
“This is a clear signal from our financial markets. It is important to demonstrate all the proper public discourse that will be beneficial and responsible,” he pointed out.
According to the senator, further depreciation of the peso threatens to aggravate inflation by driving up the cost of imported goods, including fuel and rice.
