Manila, Philippines – The Philippine peso depreciated for the ninth consecutive trading day on Tuesday, hitting a new all-time low of P59.13 against the US dollar.
The continued decline is attributed to growing market concerns over controversies surrounding infrastructure spending, particularly on flood control projects, and broader issues of corruption.
The local currency dropped 23 centavos from its previous close of P58.9:$1, surpassing the previous record low of P59:$1 seen in December 2024. The Bangko Sentral ng Pilipinas (BSP) acknowledged the recent market sentiment, noting that the country continues to grapple with corruption issues, particularly those related to flood control projects currently under investigation by Congress and an independent commission.
“The recent peso depreciation may reflect market concerns over a potential moderation in economic growth due in part to the infra spending controversy, as well as expectations of additional monetary policy easing by the BSP,” the central bank said in a statement.
President Ferdinand “Bongbong” Marcos Jr. had previously revealed that 20% of the total P545-billion budget for flood control projects went to just 15 contractors, a “disturbing assessment” that has fueled concerns about potential irregularities.
Furthermore, the United States Department of State, in its 2025 Investment Climate report, flagged “pervasive” corruption in the Philippines as a major barrier to foreign investment. While the BSP noted that remittances, relatively fast economic growth, low inflation, and ongoing structural reforms continue to support the peso, the infrastructure spending controversies and corruption concerns appear to be weighing heavily on investor confidence.
