Given that the Philippines is very dependent on imported food and energy, a weak peso can raise imported inflation, making the economic backdrop worse.Īt the most recent monetary policy meeting in February, the Philippine central bank raised interest rates by 50 bps, taking the overnight rate to 6% – its highest level in 15 years.īSP governor Felipe Medalla has vowed to match any move by the Fed in the coming months and maintain a 100 bps differential with the Fed fund target rate. The Philippine central bank, the Bangko Sentral ng Pilipinas (BSP), has hiked rates by 375 basis points ( bps) since June 2022, to cool inflation and support the peso. The Philippines has experienced one of the fastest rates of inflation in Southeast Asia at 8.7%, which comes as the peso is one of the worst-performing currencies in the region. The Philippine Statistics Authority reported on 7 March that the country's headline inflation rate marginally slowed down to 8.6 percent in February 2023 from 8.7 percent in January 2023, as price increases of certain food commodities and energy eased.Īs a result, the Philippine central bank stayed in an inflation-fighting mode in March, raising its benchmark interest rate by 25 basis points to 6.25%, but said its next policy decision will depend largely on how consumer prices behave in the coming months. However, weakness could persist amid a widening trade deficit as interest rates increase, which, combined with rising inflation, could hurt consumer demand and growth prospects. The Philippine peso has remained at relatively consisent levels so far in 2023.

Since then, the pair has fallen lower, starting 2023 at 55.70 and standing at 55.98 as of 17 April 2023. USD/PHP has been steadily climbing since early 2013, when the pair traded at 40.00.īy 2015, the peso had weakened to 45.00 against the dollar, and the pair reached 50.00 in early 2017.įrom there, USD/PHP climbed to 54.40 in October 2018, before the Philippine peso strengthened again, taking the pair to 47.70 in June 2021.įrom this five-year low, USD/PHP climbed sharply higher across 2022, hitting an all-time peak of 59.21 on 28 September. The trade deficit and central bank reserves can influence the value of the Philippine peso.Īs well as the PHP, the value of the USD is also relevant, and whether the US Federal Reserve ( Fed) is hiking or cutting interest rates can also influence the exchange rate. In addition to addressing interest rates, the Philippine Central Bank can intervene in the forex market to curb excess volatility and stem depreciation or appreciation of the PHP, if deemed necessary. The central bank considers growth, inflation rates, and the trade balance, among other economic factors, to set monetary policy. What influences the Philippine peso?Īs with many currencies, the value of the peso depends on central bank action, raising or lowering interest rates. For example, if USD/PHP was 59.00, this means that 1 USD is equivalent to 59 Philippine pesos. The exchange rate USD/PHP tells us how many Philippine pesos equal one US dollar. This means that if more Philippine pesos are demanded than offered, the price of the peso would rise and vice versa. The currency was pegged against the US dollar until 1993, when the New Central Bank Act of 1993 set the peso on route to becoming a free-floating currency.Ī free-floating exchange rate means that the value of the PHP is determined by the interbank foreign exchange markets, in other words, by supply and demand. The Philippine peso (PHP), is the national currency of the Republic of the Philippines. Here we look at the latest moves in the Philippine peso, Southeast Asia’s world performing currency this year, what fuelled those moves and analysts’ US dollar to Philippine peso forecasts. Year-to-date the PHP has dropped -0.58% aganist the USD. Worst exchange rate of March 2022: 1.8084, Best exchange rate of March 2022: 1.8557, Average exchange rate in March 2022: 1.The Philippine peso has rose two a two-month high in September 2022 Photo: An147yus / ShutterstockĪfter rising to an all-time high against the US dollar (USD) in September 2022, the Philippine peso ( PHP) has fallen slightly in 2023. Worst exchange rate of February 2022: 1.8292, Best exchange rate of February 2022: 1.8503, Average exchange rate in February 2022: 1.8405

Worst exchange rate of January 2022: 1.8361, Best exchange rate of January 2022: 1.8678, Average exchange rate in January 2022: 1.8522 Taiwan Dollar to Philippine Peso Monthly Exchange Rates Converting Taiwan Dollar (TWD) to Philippine Peso (PHP) in 2022 with the best, worst and average exchange rates of the year Table of 1 Taiwan Dollar to Philippine Peso Exchange Rate:

Dollar to php chart