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Peso hits 58 to the dollar: how OFWs will be affected

21 September 2022


Peso denominations. (BSP photo)

Analysis by The SUN

The Philippine peso sank today to its lowest level ever, closing at P58 for each US dollar, fueling fears of a further rise in the prices of consumer goods’.

Analysts said they see no end to further deterioration, which is mainly due to aggressive US anti-inflation policies which have strengthened the American currency against most currencies in the world, sparking fears that the peso could hit P60 to the dollar.

Another reason for the peso losing ground is the higher demand for the US dollar because the Philippines is in the peak of its yearly importation season for Christmas.


So far, the peso has lost 13 per cent of its value.

Of equal concern is inflation, or the rise of consumer prices, and how it will be influenced by the peso’s value, considering that a number of products the country used to export – such as sugar – will now be imported.

Last August, the inflation rate stood at 6.3 per cent, almost a third higher than the 4.4 per cent in August the previous year, according to the Philippine Statistics Authority.


The Hong Kong dollar also weakened today to 7.85 to US$1, the trading ceiling set by the HK Monetary Authority when it pegged it to the US currency -- down from its latest peak of 7.5 which was set Aug. 24.

This could result in OFWs in Hong Kong hardly benefiting from the peso’s weakness, because the currency they earn is also losing ground.

In the meantime, they also have to meet their families’ increased demand for money because their usual remittances are no longer enough.

Press for details

The latest figures from the Bangko Sentral ng Pilipinas (BSP) showed that cash remittances sent through banks from around the world went up by 2.3% to $2.92 billion in July, from $2.85 billion a year earlier.

Remittances from Hong Kong reflected the peso’s performance.


In May when the peso started deteriorating from 52.34 to 52.44, Hong Kong OFWs sent home USD50.2 million. By July, when the dollar was lowest at 56.82 on July 18, remittances hit USD59.6 million.

BSP has a scheduled monetary-policy meeting tomorrow.
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