An independent Filipino economist stated that the weakening of the Philippine peso is due to the weak state of the economy, thereby criticizing President Ferdinand Marcos Jr.'s recent appeal to the public not to panic over the ongoing sharp devaluation of the national currency.
This week, the Philippine peso dropped below the 64 pesos per US dollar mark amid rising oil prices and accelerating inflation. Edison Africa, Executive Director of the Ibon Foundation analytical center and an alumnus of the London School of Economics, advised Marcos to closely examine the reasons for the peso's fall to an unprecedented level in the country's history.
Africa noted that the president must start taking action rather than only blaming geopolitical pressures, such as the Middle East war, for the current state of the peso, which has become the weakest currency in Southeast Asia. Marcos claimed that the Philippines' foreign exchange reserves are sufficient to protect the peso, attributing the decline in the exchange rate and the general rise in prices to supply factors, particularly oil and energy related to the Middle East conflict.
However, Africa believes that the president's words are not achieving the desired effect, as the Philippines is facing the highest inflation this year—7.2 percent. Even Marcos's technocrats are not optimistic. For instance, Energy Secretary Sharon Garin told reporters at the Singapore International Energy Week that the weakening peso increases the cost of imported coal, diesel fuel, and liquefied natural gas, on which the country heavily relies for electricity generation.
Garin warned that the depreciation of the peso puts additional pressure on electricity tariffs and fuel prices amidst high global oil prices and the threat of El Niño. She added that she plans to meet with the Energy Regulatory Commission (ERC) to find ways to mitigate the consequences of the peso's devaluation and persistent market volatility.