Rizal Commercial Banking Corp. chief economist Michael Ricafort on Thursday (Nov. 13, 2025) expressed optimism on the peso’s performance against the US dollar even after the local unit weakened to the 59-level. He said the seasonal surge of US dollar inflows from overseas Filipino workers, as well as the large dollar reserves of the country, are expected to support the local currency. (PNA file photo)
Seasonal dollar inflows from overseas Filipino workers and the country’s robust foreign exchange reserves are expected to help stabilize the peso, which recently touched the 59-level against the US dollar.
The local currency closed at 59.17 on Wednesday, marking a slight weakening, but Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso remains fundamentally resilient. He noted that the currency has hit this level in previous years and later recovered to the 57-level.
Ricafort said that the Christmas season historically boosts dollar remittances from OFWs, providing additional support to the peso. Bangko Sentral ng Pilipinas (BSP) data show that December remittances consistently peak each year, exceeding USD 3 billion annually since 2022.
He added that the onset of holiday-related spending encourages OFWs and other dollar earners to convert their dollars into pesos while exchange rates remain near historic highs.
Ricafort also said BSP’s measured intervention in the foreign exchange market is both expected and effective, noting that it helps temper speculation and eases pressure on the peso at a time when the dollar has become costlier for importers. The recent pullback to 59.17, he said, reflects this stabilizing force.
Another key factor supporting the local unit is the country’s gross international reserves, which stood at USD 109.7 billion as of end-October. This is enough to cover more than seven months of imports—over twice the global benchmark of three to four months.
Ricafort said this hefty buffer provides the Philippines with “added ammunition” to shield the peso from undue volatility and speculative attacks.