Amid concern over the peso’s slide, exporters are reframing the narrative: depreciation is no longer a one-sided drag, but a broader source of gains.
The peso sank to a record P60.10 per US dollar on Thursday, breaching the P60 level for the first time as oil shocks and a stronger greenback rattled markets.
For Sergio Ortiz-Luis Jr., president of the Philippine Exporters Confederation Inc., the shift reflects a more diversified economy. “We have more winners than ever,” he said, noting that the weak peso once benefited only a narrow set of sectors.
A major boost comes from remittances. Around 10 million Filipinos abroad—including 2.5 million overseas workers—see their dollar earnings translate into higher peso income, supporting consumption at home.
Tourism also gains, as a softer peso makes the Philippines a more affordable destination, improving its competitiveness as global travel recovers.
At the same time, depreciation tilts the market toward domestic producers. Costlier imports give local manufacturers and farmers a pricing edge, encouraging consumers to shift to homegrown alternatives—from agricultural goods to basic manufactures.
Dollar earners remain well positioned. The business process outsourcing industry benefits from revenues in dollars and costs in pesos, while electronics exporters—despite heavy import dependence—are cushioned by higher export values.
“Exporters are just one segment of the winners,” Ortiz-Luis said.
The downside is concentrated. Government faces rising debt servicing costs on dollar-denominated obligations, though stronger trade-related revenues may partly offset this.
Crucially, the peso’s decline has been gradual, allowing firms to adjust pricing and manage currency risks—unlike abrupt swings that disrupt planning.
For Elizabeth Lee, president of the Federation of Philippine Industries, the weakness reflects global dynamics. A stronger dollar amid geopolitical tensions continues to pressure emerging market currencies.
“We’re not overly worried, but we remain cautious,” she said, expressing confidence in the Bangko Sentral ng Pilipinas to manage volatility.
The result is a weaker peso that redistributes gains more widely—even as risks persist.
