The central bank considers growth, inflation rates, and the trade balance, among other economic factors, to set monetary policy. What influences the Philippine peso?Īs with many currencies, the value of the peso depends on central bank action, raising or lowering interest rates.
For example, if USD/PHP was 59.00, this means that 1 USD is equivalent to 59 Philippine pesos. The exchange rate USD/PHP tells us how many Philippine pesos equal one US dollar. This means that if more Philippine pesos are demanded than offered, the price of the peso would rise and vice versa. The currency was pegged against the US dollar until 1993, when the New Central Bank Act of 1993 set the peso on route to becoming a free-floating currency.Ī free-floating exchange rate means that the value of the PHP is determined by the interbank foreign exchange markets, in other words, by supply and demand. The Philippine peso (PHP), is the national currency of the Republic of the Philippines. Here we look at the latest moves in the Philippine peso, Southeast Asia’s world performing currency this year, what fuelled those moves and analysts’ US dollar to Philippine peso forecasts.
Year-to-date the PHP has dropped -0.58% aganist the USD. The Philippine peso has rose two a two-month high in September 2022 Photo: An147yus / ShutterstockĪfter rising to an all-time high against the US dollar (USD) in September 2022, the Philippine peso ( PHP) has fallen slightly in 2023.
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