Posted by ReyFort Media
President cites reserves, urges calm amid rising prices
PRESIDENT Ferdinand Marcos Jr. on Wednesday pledged to defend the peso after it hit a record low against the dollar, urging Filipinos not to panic as the government works to contain rising prices.
“Our policy towards the peso is to continue to defend the peso as hard as we possibly can,” Marcos told reporters.
The peso recovered on Wednesday, closing at 64.025 to the dollar from Tuesday’s record-low close of 64.17, a gain of 14.5 centavos, according to Bankers Association of the Philippines data.
The currency has lost more than 8 percent against the dollar this year, Reuters reported.
Marcos said authorities had the tools and resources to support the peso, citing the country’s foreign exchange reserves.
Marcos described the country’s foreign exchange reserves as healthy and said they could be used to defend the currency.
Foreign reserves fell to $99.5 billion in September, their lowest level since September 2023, according to Reuters.
The President’s assurance followed his meeting with central bank officials on Tuesday.
The Bangko Sentral ng Pilipinas raised its key policy rate by a larger-than-expected 50 basis points last week to combat inflation, warning that a weaker peso could add to price pressures by making imports more expensive, Reuters reported.
The central bank governor also said last week that the BSP intervenes in the foreign exchange market to smooth sharp fluctuations.
Inflation accelerated to 7.2 percent in September from 6.1 percent in August.
Marcos linked pressure on the currency and consumer prices to rising global oil prices and their effects on the economy. He said monetary measures alone could do only so much to contain supply-driven inflation.
“It’s a supply side inflation. So, monetary, monetary measures can only go so far,” he said.
EASING FOOD PRICES
Marcos said the government had little control over world oil prices but was working to bring down food prices.
In a separate interview with Bombo Radyo Cagayan de Oro, Palace Press Officer Castro said the government was seeking additional fuel sources and importing food products, including rice and corn, to bolster supply and ease price pressures.
She attributed continuing price pressures to the Middle East crisis and high global fuel prices, while acknowledging that consumers could not be entirely shielded from rising costs.
Castro also cited an assurance from the Department of Trade and Industry that prices of basic necessities and prime commodities would not increase through year-end.
She urged manufacturers and producers to keep prices stable and defer increases where possible, particularly to help vulnerable consumers. (J. Reyes/ Malaya)
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