The Philippines – The Philippine peso has hit a record low against the US dollar. The currency has been affected not only by the strength of the global dollar, but also by a widespread corruption scandal. This scandal has rocked infrastructure projects in the country in recent months.
Investigations into the fraudulent use of public funds allocated for water infrastructure and construction projects that never materialized have severely undermined market confidence. This development has forced the Philippine central bank to maintain its monetary easing policy.
Historic collapse and expectations of slower growth
The Philippine peso hit a daily low on October 28, reaching 59.262 against the dollar, surpassing its previous record low of 59.168 set in 2022.
On the same day, the Central Bank of the Philippines (Bangko Central ng Philippines) acknowledged that the decline reflected “market concerns about a potential slowdown in economic growth.” This slowdown is directly linked to the corruption scandal and expectations of further interest rate cuts.
Erosion of confidence despite external transfers
This collapse represents a sharp reversal from previous years, which saw relative stability in the currency. That stability was supported by a steady flow of dollar remittances from overseas Filipino workers, which bolstered domestic consumption and stabilized the national currency.
On Friday, the peso traded at 58.9 to the dollar. This indicates that confidence in the Philippine economy remains fragile, and that the recent corruption scandal has had a profound impact on financial markets.
