Peso weakens to P45:$1 level

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THE peso traded weakly and returned to the P45 territory on Monday, hitting a five ­month low as the dollar gained impetus from an improved US jobs data.

Monday’s trading saw a 15­centavo decline for the peso from P44.87 on Friday. It closed at P45.02, the weakest level since January 8 when a dollar fetched P45.06.

The local currency opened at P45.10-to-$1 on the Philippine Dealing System (PDS) before trading between P45.15 and P45.02.

Total volume reached $822.100 million from $670.700 million traded Friday.


An economist said a stronger dollar can be traced to the 280,000 additional US jobs in May – beating expectations of 226,000.

“The strong job creation numbers in US released last Friday pushed up 10­year bonds to 2.41 percent, a sizeable jump from 2.12 percent end-of-May. This and the more promising outlook will attract capital flows into the US and make the dollar stronger,” Dr. Victor Abola, economist at the Univesrity of Asia and the Pacific, said.

Abola pointed out the disappointing 5.2 percent growth the Philippine economy posted in the first quarter was sufficient enough for foreign investors on the Philippine Stock Exchange to liquidate positions.

“We have witnessed six weeks of continuing outflows by foreigners from the stock market. Thus, the peso has depreciated logically,” he said.

The economist noted, however, a weaker peso is not bad at all as it tends to stimulate the economy, particularly consumer spending , as overseas Filipino workers get more out of remittances, as well as exporter earnings.

“This is needed because the government is slow to spend the money it has budgeted. Besides, our studies show that peso depreciation has very little effect on inflation, to which conclusion the BSP (Bangko Sentrla ng Pilipinas) has reached from its own studies,” he said.

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  1. The Philippines has spent very little money on infrastructure the past 5 years, Everything is starting to fall apart.
    What problem got fixed during the past 5 years ?

    The poverty rate ? 25% of the population live under the Poverty cap while the population continues to increase that 25% is getting larger.

    Electric service is unreliable and rates continue to rise. No improvement there
    Water service is unreliable even in the major cities.

    Education is underfunded, students still chipping in to by a fan for their classrooms.

    Mass transit breaking down falsified maintenance records and spending.

    Manila still flooding.

    Prison system over crowded and buildings falling apart, inmates have access to automatic weapons and hand grenades.

    Billions unaccounted for from the Pork barrel and DAp fund giveaways.

    Selective prosecution by the Justice Dept which is controlled by the ruling Party.

    18 senators on the Napoles list only 3 opposition senators charged
    100 members of the house of rep’s on the Napoles list.

    The only thing improving in the Philippines is the Congress members net worth.

    The Philippines economy will continue to fall and the amount of people living in poverty will grow thanks to the political dynasty families that control the government.

    Waiting 28 years so far for congress to comply with the 1987 constitution that prohibits political dynasties.

    Whatever happened to the freedom of information bill ? Congress ignoring that as well.

    Maybe in another 28 years the people will have had enough and do something about the corrupt government.