(MANILA BULLETIN)

Economist-solon Albay 2nd district Rep. Joey Salceda has advised the Philippine government to "adapt" amid concerns that the peso slide against the United States (US) dollar would persist well into 2025.

Incidentally, January 2025 is the start of Republic President-elect Donald Trump's second go-round in the White House. 

Looking ahead, Salceda suggested this course of action: "Better to adapt. Strengthen our dollar-making industries. Boost tourism. Develop our exports. Encourage virtual assistants and other dollar-earning endeavors."

As for the sinking Philippine peso, Salceda believes that the incoming remittances from overseas Filipino workers (OFWs) this Holiday season will keep the currency afloat.

"OFW remittances in December should keep it from going into freefall towards the end of 2024," he said.

"I also see that some of Trump’s aggressive anti-import rhetoric is strengthening the dollar and is being priced in," Salceda noted.

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Putting his economist's hat on, Salceda reckoned that over-defending the peso might not be the best thing to do for the country’s financial institutions.

"I would caution the BSP (Bangko Sentral ng Pilipinas) against defending the peso excessively, even if the decline continues through 2025," said the Bicolano and.

"If OFW remittances aren’t enough to provide support to the trend this December, this will likely persist, and most peso-bolstering efforts will be a waste," he argued.

The Philippine peso recently matched its all-time low of P59 against the surging greenback.