Palace: Local currency slide driven by Middle East tensions

Malacañang on Tuesday said it cannot intervene in the peso’s decline against the US dollar, describing it as a consequence of the broader economic fallout from the ongoing war in the Middle East.

“This is not what we want. The President does not wish for unrest in the Middle East. This is truly having an impact, and the weakening of the peso against the dollar is a result of the geopolitical tensions happening in the Middle East,” said Palace Press Officer, Presidential Communications Office Undersecretary Claire Castro.

On Monday, the Philippine peso depreciated further to a new record low of P60.69 per US dollar, weakening from the previous record close of P60.55.

“So this could indeed be the consequence until the tensions or conflict in the Middle East are brought under control,” Castro said in Filipino.

Government continues to do its best

Despite this, Castro stressed the government continues to do its best to ensure that Filipinos do not have to bear the brunt of the weak currency, which could trigger a domino effect on the economy, particularly on inflation.

“This is because of the ongoing conflict in the Middle East. And we know what the President and this administration are doing to mitigate the effects of this conflict, and to do everything possible to address everything that is happening, including helping our fellow Filipinos,” Castro said.

Soaring prices

Meanwhile, Castro said the Department of Trade and Industry (DTI) assured that prices of basic goods will remain unchanged until 16 April, following an agreement with manufacturers under the government’s Unified Package for Livelihoods, Industry, Food and Transport (UPLIFT) program.

Castro said the DTI had earlier met with major manufacturers who committed to keeping prices stable.

UPLIFT will release a list of products covered by the agreement for the information of the public.

Castro said the DTI will also conduct weekly monitoring of basic commodity prices, noting that Secretary Cristina Roque is set to meet again with manufacturers to ensure price stability.