WHEN the peso weakens, Filipino families feel the loss at the market, at the gas pump, and when the electricity bill arrives. For workers whose wages barely cover their needs, a falling currency makes an already tight budget harder to stretch.
The peso’s recent slide past P64 against the US dollar has sharpened concerns about household purchasing power. But the exchange rate matters beyond the record it sets. The more urgent question is how much more families must spend to put food on the table, get to work, and keep their children in school.
A weaker peso raises the local cost of imported fuel, food, and raw materials. Those increases can work their way through the economy as businesses pay more to produce and transport goods. Households may then have to cut spending elsewhere, leaving less for education, healthcare, and housing.
Currency weakness can also complicate efforts to contain inflation. If higher import costs push prices up, monetary authorities may face pressure to keep interest rates elevated, making borrowing more expensive for businesses and consumers.
Some Filipinos benefit from this situation. Families receiving dollar remittances get more pesos, while exporters and other businesses earning foreign currency may see higher peso revenues.
But rising domestic prices can erode those gains. For people paid entirely in pesos, there is no corresponding exchange-rate windfall.
Global developments help explain the pressure. Conflict in the Middle East, oil price movements, and changes in US monetary policy can affect currencies and import costs. The Philippines’ reliance on imported essentials leaves it exposed to disruptions it cannot control.
That makes the country’s response all the more important.
External pressures do not excuse weaknesses at home. Corruption, wasteful spending, and unpredictable policies can discourage investment and weaken confidence. Every peso lost to an overpriced or poorly planned project is money unavailable for services and investments that could make the economy stronger.
Questions about budget insertions demand close scrutiny. The proposed 2027 national budget must be judged by what it delivers: accessible healthcare, better schools, productive farms, reliable infrastructure, and opportunities for decent work. Allocations must have clear purposes, proper documentation, and measurable results.
The same discipline should guide economic policy. Farmers need support that helps them produce more and bring their goods to market at lower cost. Manufacturers need reliable power, efficient transport, and predictable rules. Businesses need confidence that investing and creating jobs will be rewarded.
Strengthening local production would help reduce exposure to supply disruptions and currency swings. Improving energy security would also make households and businesses less vulnerable to imported fuel costs.
These goals require sustained investment and consistent implementation.
As the 2028 elections approach, public spending must remain focused on public needs. Confidence depends in part on whether the government can demonstrate that national priorities guide its decisions.
Filipinos have long relied on resourcefulness, family support and bayanihan to get through difficult times. “Kaya natin” expresses courage. But resilience should not become an excuse for asking people to endure hardships that better policies and responsible leadership could ease.
Whether the peso reaches P65 or P66 to the dollar is only part of the concern. The deeper test is whether the country can build an economy that withstands shocks, sustains livelihoods, and gives families room to plan beyond their next payday.
The exchange rate is a number on a screen. Its real measure is what Filipinos can afford — and whether they can face tomorrow with confidence.
Christopher U. Ismael is the CEO of Ismael and Co. CPAs, and a member of the Association of Certified Public Accountants in Public Practice (ACPAPP).
