President Ferdinand Marcos Jr. said the Philippine government will not exhaust its foreign exchange reserves just to defend the value of the peso, as the currency continues to face pressure in global markets.
Speaking on the issue of the peso’s recent depreciation, Marcos stressed that it would be impractical for the country to spend all of its reserves merely to keep the local currency strong against the US dollar. He explained that the reserves serve many other critical purposes, including protecting the country’s financial stability and supporting economic needs during crises.
The president’s remarks come as the Philippine peso recently weakened to around P60 to the US dollar, raising concerns among businesses and consumers about the possible effects on fuel prices, imported goods, and inflation.
Marcos said that while the government monitors currency movements closely, exchange rates are influenced by global economic conditions and market forces beyond the country’s control. Instead of aggressively intervening in the currency market, he emphasized the importance of maintaining strong economic fundamentals to support the peso over the long term.
Economic managers have repeatedly assured the public that the Philippines remains in a stable position despite the currency’s fluctuations. The country’s foreign reserves, they noted, are intended to safeguard the economy and ensure the government can respond to potential financial shocks.
The administration continues to track developments in global markets as the peso’s performance remains closely tied to international economic trends and the strength of the US dollar.