The peso’s movement against the US dollar is quite a complex narrative, and not just a simple strong-versus-weak story. Economists say the impact of the currency shifts depends on which side of the economy one stands.
The exchange rate has encompassing effects – from the cost of fuel and food, to the value of remittances, and even employment opportunities in companies in the export industry.
Understanding the gains and losses from the movement offers a clearer picture of how the smallest movement impacts the broader economy.
The rate reflects the impact of international and domestic factors. Locally, the peso is affected by inflation trends, trade deficits, remittance inflows, and policies of the Bangko Sentral ng Pilipinas (BSP).
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