By Chloe Mari A. Hufana and Kenneth Christiane L. Basilio, Reporters
THE Presidential Palace on Tuesday signaled that it is ready to roll out additional measures to melt the economic impact of a weakening peso, as escalating war within the Middle East continues to weigh on the currency and fuel inflation risks.
Palace Press Officer Clarissa A. Castro said the peso’s fall to historic lows reflects external pressures linked to the conflict and warned that volatility could persist if hostilities drag on, though she stressed that the administration is working to contain the fallout.
“We all know what the President and the administration are doing to mitigate the impact of the Middle East conflict and to do every part possible to deal with the situation, including helping our fellow Filipinos,” she told reporters in Filipino, without providing details.
She said the peso’s slide to successive record lows might proceed so long as the war drags on. “That is the possible consequence while the conflict is just not contained.”
The peso has posted multiple sharp declines this month because the conflict disrupts global energy markets, stoking fears of imported inflation and renewed strain on financial stability in an economy heavily reliant on foreign fuel supplies.
In a separate video message, President Ferdinand R. Marcos, Jr. said his administration would proceed providing intervention and relief to Filipinos because the economic effects of the war weigh on households, citing government aid measures geared toward cushioning consumers.
He said an inter‑agency committee is coordinating efforts to stabilize prices and speed up the delivery of assistance. These include a planned price cap of P50 per kilo on imported rice and the expansion of subsidized P20 rice outlets nationwide.
The committee met on Monday to debate additional measures in response to the war. The Development Budget Coordination Committee is scheduled to satisfy later this week to submit its assessment on the possible suspension or reduction of excise taxes on petroleum products.
“So long as there’s even one Filipino who needs help, we are going to proceed to work to succeed in them,” Mr. Marcos said in Filipino. “We won’t stop taking motion until that is felt in every household.”
Mr. Marcos has said the federal government wouldn’t exhaust the country’s foreign exchange reserves solely to defend the peso, noting that there’s a limit to state intervention against market forces driving the dollar higher.
He said a level of peso weakness could be tolerated, reflecting a policy stance focused on curbing excessive volatility reasonably than targeting a selected exchange rate level.
The peso closed at an all‑time low of P60.748 to the dollar on Tuesday, breaching its previous record of P60.69 set a day earlier, in keeping with Bankers Association of the Philippines data posted on its website.
Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. has said the central bank sees no need for aggressive market intervention, reiterating that it steps in just during times of excessive volatility reasonably than defending a hard and fast exchange rate.
Currency depreciation raises the fee of imported goods, particularly petroleum products, heightening inflation risks at a time when global oil prices remain elevated as a consequence of supply concerns linked to the Middle East war.
The administration has rolled out subsidies and transport discounts as a part of efforts to cushion households and employees from higher fuel and transport costs.
The Philippines is under a one‑yr national state of energy emergency, the primary such declaration globally, because the war threatens fuel supply chains and exposes vulnerabilities within the country’s energy system.
‘UNIFIED RESPONSE’
On the House of Representatives, lawmakers are moving to draft a package of measures geared toward shielding the economy from oil shocks that might deepen inflation and weaken growth.
The chamber would form a joint congressional panel composed of 13 committees to craft proposals to blunt the impact of oil price spikes, including improving subsidy-targeting and possibly expanding assistance through budget realignments, Marikina Rep. Romero “Miro” S. Quimbo told a news briefing.
“We would like something very comprehensive that can make the economy more resilient, so we don’t suddenly stumble each time there are drastic increases in oil prices,” he said in mixed English and Filipino.
Urgency has grown because the month‑long conflict involving the US, Israel and Iran has underscored how exposed the country’s import‑dependent economy is to geopolitical disruptions.
Now in its fifth week, the conflict has already prompted President Marcos to reopen talks with China on joint energy exploration within the South China Sea.
“The only real purpose is to have an orchestrated and unified response to confront and examine the urgent steps we are able to take to deal with this oil price crisis,” Mr. Quimbo said.
The Philippines, a net crude importer sourcing most supplies from the Middle East, is facing record pump prices, with gasoline in Metro Manila nearing P115 per liter and diesel climbing to as high as P156 per liter.
Mr. Quimbo said the 13 House committees, including those on budget, taxation, economic affairs, transport and agriculture, will meet on April 8 for briefings by economic managers before forming subcommittees to develop proposals.
The important thing objective is to discover which sectors and industries are immediately affected, he said. “We would like to know what industries can have deep, threatening effects on your complete economy.”
He really helpful tax incentives and subsidies for electric vehicle manufacturers to encourage adoption and reduce dependence on oil, and called for faster renewable energy investments by cutting bureaucratic bottlenecks.
“The role of the federal government is to create a climate where investments are easily attracted and guarded,” Mr. Quimbo said.
The joint panel may even review the 1998 Oil Deregulation Law and examine proposals to determine a national petroleum reserve, while studying options to reallocate funds for aid programs without disrupting existing spending commitments.
“Step one is admittedly to have an aid program — identifying available money and on the lookout for latest sources,” he added.