Christopher G. Cervantes, RFP

The Philippine peso has been on a bumpy ride again. In recent days, it slipped to around ₱59.13 per U.S. dollar — its weakest in recent history. For many Filipinos, this feels like déjà vu: imported goods getting more expensive, fuel prices creeping up, and headlines warning about “peso pressure.” The question on everyone’s mind is: what’s really going on — and where are we headed from here?

Let’s start with the facts. The peso’s weakness isn’t happening in isolation. Globally, the U.S. dollar is flexing its muscles. As the Bangko Sentral ng Pilipinas (BSP) itself admitted, the recent slide is largely “dollar-driven”. At home, the picture isn’t helping: inflation remains sticky, and the Philippines continues to import more than it exports. Every time oil prices rise, our import bill grows, forcing local companies to buy more dollars to pay suppliers abroad. Add to that some political noise, slow infrastructure spending, and the usual red tape — and investor confidence wavers. When foreign funds leave the market, the peso weakens even more.

Now here’s the part we must highlight: massive corruption is also part of the story. The BSP and analysts noted that recent corruption scandals — particularly involving infrastructure and flood-control projects — have rattled investor confidence and weighed on the currency. Think about this: when large sums of public funds are misallocated, when contracts are tainted, when public institutions seem weak — that sends a signal to domestic and foreign investors that the system isn’t fully reliable. Less trust means less investment, more outflows, and more pressure on the peso.

So you have a trio of threats: a strong dollar, import-heavy vulnerabilities, and institutional weakness (including corruption). Yung kombinasyon na ‘yan ang pinaghalong makapag-pa-tigil ng momentum ng pera mo. But before we panic, it’s important to understand: a weaker peso doesn’t mean the sky is falling. It’s part of a bigger economic cycle. The key is knowing how to protect yourself — and even find opportunities amid the chaos.

First, don’t let short-term fear destroy long-term plans. Exchange rates move daily, but your financial goals should not. If you’re investing for your child’s education, your dream home, or retirement, those goals are measured in years – not today’s forex rate. Volatility is scary, but staying consistent with your plan is what builds wealth.

Second, build buffers. A weaker peso means higher prices for imported goods, so expect a ripple effect on groceries, utilities, and fuel. Strengthen your emergency fund. If possible, keep three to six months’ worth of expenses ready. This isn’t just financial advice — it’s your peace of mind.

Third, diversify your assets. Don’t keep all your eggs in one peso basket. Having some investments or income in foreign currency — whether through global funds, dollar-denominated insurance, or even partial savings in USD — can cushion you from peso depreciation. If the peso drops, those assets become more valuable in local terms.

Fourth, watch inflation like a hawk. If prices remain high, the BSP might keep interest rates elevated longer. That’s good news for savers (higher deposit yields), but challenging for borrowers. If you have loans, check your rates. If you’re investing, balance growth funds with fixed-income instruments that can benefit from high interest rates.

Fifth, stay informed, not alarmed. Remember that exchange rates are driven by countless factors — geopolitics, oil prices, global demand, investor behaviour, and domestic policy. The corruption scandals may be headline-making, but they’re just one part of the equation. Focus on what you can control: your savings rate, spending discipline, and investment horizon.

If the peso weakens further in the short term, that’s not the end of the story. Over the medium term — say two to three years — there’s room for stability or even recovery if the Philippines can strengthen its fundamentals: better infrastructure execution, sound fiscal management, and improved investor confidence. The BSP has healthy reserves, the economy is still growing above 5%, and overseas remittances remain robust. Those are real stabilisers.

The truth is, markets move in cycles, but your discipline should not. Whether the peso is at ₱55 or ₱60 to the dollar, what will matter more is how consistent you are in planning, saving, and investing.

So when you see the headlines scream “peso panic”, take a deep breath. The peso may wobble — but your financial foundation doesn’t have to.

E-mail me at chris.cervantes@cardinalbuoy.com. Visit my website at www.cardinalbuoy.com. Follow me on Twitter @cervantes_rfp. Chris Cervantes is also the author of the best-selling book: “Financial Planning for the Fast Changing World, ” “LIfe Begins,” “The Seed Money” and “Odssey of Wealth and Legacy”.