Peso Climbs to Strongest Level Since 2023 as Remittances Surge
The peso closed at ₱54.20 to the dollar on Monday, its strongest finish in nearly three years, lifted by record overseas remittances and sustained foreign inflows into local bonds.
MANILA — The Philippine peso strengthened to ₱54.20 against the US dollar at Monday’s close, its firmest level since October 2023, as record remittance inflows and foreign buying of local government bonds boosted demand for the currency.
Data from the Bangko Sentral ng Pilipinas (BSP) show personal remittances from overseas Filipinos reached $19.8 billion in the first seven months of 2026, up 6.4 percent from the same period last year and on track for another annual record.
Traders said the peso also drew support from narrowing trade deficits and expectations that the US Federal Reserve will cut rates twice more before year-end, weakening the dollar globally.
A stronger peso is a double-edged sword — imports and fuel get cheaper, but we must watch its effect on the dollar earnings of our OFW families and exporters.
Economists said the currency’s strength could help ease imported inflation, particularly for fuel and wheat, giving the BSP more flexibility in setting policy rates for the rest of the year.
The peso has appreciated 4.6 percent year-to-date, making it the second-best performing currency in Southeast Asia after the Singapore dollar.