Economist Predicts ₱62 to $1 by End of the Year

With the US Federal Reserve delivering huge rate hikes to counter inflation, an economist predicts the peso hitting ₱62 to $1 by the end of the year.

Managing Director at eManagement for Business and Marketing Services, Jonathan Ravelas, said in his interview on One News with “The Chiefs” that the local peso is predicted to hit another record low of ₱61.80 to 61.90 to $1 by the end of 2022.

“In the near term, which is probably between now and yearend, we could probably hit 61.80 to 61.90 before we eventually get some adjustments,” he mentioned.

Reveals hopes that remittances from overseas Filipino workers will alleviate the weakening peso by Q4. Around this time, OFWs send more money to their families due to the Christmas season.

“So hopefully the remittances will still come,” Ravelas says.

However, Ravelas also mentioned that since the US dollar value has increased, OFWs are sending less.

Bangko Sentral ng Pilipinas data shows that personal remittances increased by 2.7% to $20.33 billion from January to July 2022 compared to $19.78 billion in the same period of 2021.

From the total amount, cash remittances done with banks rose to 2.8% or $18.26 billion from a previous $17.77 billion. This figure is lower than BSP’s 4% target for 2022.

Rep. Joey Salceda, House of Representatives Chairman of the ways and means committee, has stated that the peso could further depreciate to a range of 65 – 68% per $1 as the US Fed might increase interest rates to fight inflation.

“In the last so many years, we have heard the saying when the US catches a cold, Asia gets the flu. So eventually this situation is really fueled by the rising US dollar,”  Ravelas says.

Source: Philstar