The peso depreciated 9.3 percent against the US dollar in 2022, pulled down by global uncertainties that impacted financial markets, including the surge in commodity prices that forced the US Federal Reserve and the Bangko Sentral ng Pilipinas to aggressively raise interest rates.
Data from the Bankers Association of the Philippines website showed the peso ended the year at 55.755 a dollar, losing P4.756 compared to the 50.999 on the last trading day of 2021. It was, however, stronger than the 56.20 on Dec. 28. Total volume turnover reached $807.8 million, down from $882.85 million previously.
Michael Ricafort, chief economist of Rizal Commercial Banking Corp., said the year-to-date performance of the peso was still somewhat similar to other regional currencies such as the Indian rupee, Indonesian rupiah, Chinese yuan, Malaysian ringgit and Thai baht.
He said a “still relatively weaker peso in recent months could still increase the possibility of further local policy rate hikes and possibly matching future Fed rate hikes if inflation remains high.”
Ricafort earlier said the peso could weaken in the first quarter after the holiday season.