BSP governor warns that weak savings and low exports pressure the peso

On September 2 the Philippine peso closed at an all-time low of P62.50 per dollar, intensifying worries about its depreciation. In a Senate briefing, BSP Governor Eli Remolona said the central bank can only temper the decline by using a portion of its $103.3 billion in international reserves, which are sufficient for roughly 6.7 months of import payments. He warned that exhausting these reserves would leave the country vulnerable.

Remolona also pointed to the Philippines’ low national savings rate and ongoing current-account deficit as structural constraints, urging policies that expand export capacity, such as the proposed Pax Silica and Luzon Economic Corridor projects. His comment that Filipinos have a “consumption culture” provoked backlash from groups like Nagkaisa, Gabriela Women’s Party and the IBON Foundation, who said low wages and essential costs drive spending. The governor clarified that he was not blaming individuals but stressing the macro-economic need for more dollar inflows to finance investment.