Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona said the peso is unlikely to weaken to ₱60 per US dollar in the near term, even as the central bank remains cautious about further interest rate cuts, which he said was a “maybe” rather than a certainty.
Remolona said the BSP does not target or defend a specific exchange rate level, stressing that any intervention would depend on how the peso moves, particularly if the change is sharp or disorderly.
“Just because the rate is 60 does not mean we’ll defend it,” he said, adding that the central bank acts mainly to smooth excessive volatility. He acknowledged that the BSP has intervened in recent sessions in its usual manner, but not consistently.
On monetary policy, Remolona said the easing cycle is still uncertain, with another rate cut dependent on incoming data and decided on a meeting-by-meeting basis. While softer economic growth, including weaker fourth-quarter GDP, could support a cut, he emphasized that inflation remains the BSP’s top priority. The US Federal Reserve continues to be monitored, but is only one factor among many, Remolona added.
The peso has recently traded in a narrow range near ₱59 per dollar, showing mild strengthening and limited volatility over the past week. Despite this stabilization, the currency remains close to record-weak levels seen earlier in January, when it briefly moved above ₱59.4 amid dollar strength and geopolitical risks. Remolona said that, based on current conditions, a move to ₱60 per dollar is “not soon.”
Previously, the central bank governor said the policy rate is already “very close to where we want it,” and that one more interest rate cut as soon as next month may be considered. The caveat, Remolona indicated, is a sharper-than-expected growth slowdown.
Analysts, nevertheless, have noted that despite the cautious handling of the monetary policy levers, the exchange rate has weakened further, having closed Friday’s trades at P59.09 per dollar or only seven centavos stronger than the day before at the spot market.
