Strong peso seen as short-lived

The Philippine peso’s gains against the United States (US) dollar at the start of the year may be erased by the widening current account deficit, according to the World Bank.

- By BEN ARNOLD DE VERA

In its Philippines Monthly Economic Developments report for March 2025, the Washington-based multilateral lender noted that the peso appreciated by P2.41 as of mid-March from P58.2 versus the greenback a month ago.

The peso tracked its regional peers, which strengthened amid concerns that US President Donald Trump’s tariffs may adversely impact the American economy.

Also, "subdued inflation and inflation expectations contributed to an increase in the real interest rate differential between the Philippines and the US," the World Bank said.