The Philippines’ outstanding debt climbed to a new record high of P18.49 trillion as of end-March 2026, driven largely by the peso’s depreciation against the US dollar, according to the Bureau of the Treasury (BTr).

Data released by the Treasury on Thursday showed the national government’s debt stock rose 1.81 percent from P18.16 trillion at end-February, reflecting higher valuations of foreign currency-denominated obligations amid the peso’s continued weakness.

Revaluation effect of peso’s depreciation

The BTr said the increase was mainly due to the revaluation effect of the peso’s depreciation, alongside net issuances of domestic government securities.

Domestic debt reached P12.53 trillion, up 0.44 percent month-on-month, supported by net issuances amounting to P46.72 billion. The weaker peso also added P8.68 billion to the value of foreign currency-denominated domestic securities.

External debt, meanwhile, jumped 4.81 percent to P5.95 trillion from P5.68 trillion, as the peso’s depreciation inflated the peso equivalent of foreign obligations by nearly P300 billion following a P3.039 slide in the exchange rate against the US dollar.

Record lows eight times since MidEast conflict

The peso has sunk to record lows eight times since the onset of the Middle East conflict, breaching the P60 and P61-per-dollar levels before hitting a trough of P61.56 last week, driven by safe-haven demand for the dollar and persistently volatile oil prices. 

Part of the increase in external liabilities, noted the Treasury, was offset by net repayments and favorable revaluation adjustments from third currencies.

The latest figure surpassed the previous record of P18.16 trillion posted in February, underscoring the growing impact of currency volatility and continued government borrowing amid mounting external pressures. 

Further fluctuations remain likely

The peso had traded at P57.66 on 27 February prior to the conflict’s escalation, with analysts warning that further fluctuations remain likely given the Philippines’ exposure to global oil prices.

Earlier, economic managers said the government would continue prioritizing domestic borrowing to reduce exposure to foreign exchange risks and external market volatility, with domestic obligations still accounting for the bulk of the debt portfolio.