The Bangko Sentral ng Pilipinas (BSP) released an official statement following the peso’s slide to a 10-month low of P58.9 against the US dollar. On Tuesday, 28 October 2025, the BSP clarified that the exchange rate is driven by market forces, not by direct central bank intervention.

“We continue to maintain robust reserves. When we do participate in the market, it is largely to dampen inflationary swings in the exchange rate over time rather than to prevent day-to-day volatility,” the BSP said in its statement.

The central bank noted that the peso’s depreciation may reflect slower economic growth, partly influenced by the ongoing infrastructure corruption scandal involving the Department of Public Works and Highways (DPWH). It also attributed the weaker exchange rate to investor expectations of a potential monetary policy easing by the BSP.

Despite this, the BSP emphasized that the peso remains fundamentally supported by key economic drivers such as steady remittance inflows, resilient business process outsourcing (BPO) revenues, strong tourism receipts, and moderate inflation. These, it said, serve as buffers that help protect the currency against external shocks.