The Bangko Sentral ng Pilipinas is cracking down on speculative trading against the peso by imposing a fine of P1 million — the maximum allowed by law — for each violation of foreign exchange regulations.
The peso’s weakness, which began toward the end of the first quarter, resulted in the local currency depreciating by over 6% since then. This means a borrower who took out a loan in mid-March would today be carrying 6% more debt in peso terms.
The Philippine peso ended another trading day weaker against the US dollar, with bankers noting that the Bangko Sentral ng Pilipinas was, for the most part, allowing the local currency to “find its own level” against the strong US dollar.
In March 2024, the Philippines reported a significant turnaround in dollar flows, posting a $1.2 billion balance of payments (BOP) surplus after two consecutive months of deficits.