Malacañang on Thursday assured the public that the government is actively implementing measures to cushion the impact of a depreciating peso and stabilize the economy, following the Philippine currency’s slide to P62.565 against the U.S. dollar on Wednesday.
In a press briefing at the Palace, Press Officer Claire Castro acknowledged that a weakening currency presents clear economic challenges for the country.
“Definitely, it is not good that the value of the peso is declining, but there are accompanying measures we can deploy to support our fellow citizens,” Castro said, speaking partly in Filipino.
According to the Office of the Executive Secretary (OES), the peso’s recent drop was largely driven by broad U.S. dollar strength coupled with elevated global oil prices, which were further exacerbated by ongoing tensions in the Middle East.
To counter these pressures, the OES noted that the Bangko Sentral ng Pilipinas (BSP) implemented an interest rate hike last week to anchor inflation expectations and defend the local currency. The Palace stated that the central bank remains prepared to act decisively based on emerging economic data and intervene in the foreign exchange market to curb extreme volatility.
On the fiscal front, Castro emphasized that the administration of President Ferdinand R. Marcos Jr. is enforcing strict spending discipline to maximize public resources.
“Our funds must not be wasted on unnecessary expenditures. There must be discipline in how funds are allocated so they can effectively boost the country’s economy,” Castro added.
The OES further outlined that the national government is working hand-in-hand with its economic team to mitigate the cascading effects of a higher exchange rate on essential food items, business operations, logistics, and retail prices.
Among the primary initiatives launched to cushion the public from price shocks is the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) program. Under this framework, the government has begun reprioritizing state spending, cutting non-essential administrative costs to direct funding toward sectors most vulnerable to rising prices.
“The main thrust of the economic team is to support economic growth by increasing productive public spending,” the OES stated. “The administration’s approach focuses on fiscal discipline and the efficient use of public funds, carefully reviewing spending proposals and prioritizing programs that yield high economic and social returns.”