A lawmaker has asked the House of Representatives to conduct an inquiry into the impact of the strong Philippine peso on exporters, local industries, and other affected sectors.
Cagayan de Oro City Representative Rufus Rodriguez filed on June 5, 2025 House Resolution (HR) No. 2318 calling for a joint inquiry into the impact of the strong peso on certain sectors of the economy and society including exporters, domestic industries, business process outsourcing (BPO) firms, and overseas Filipino workers (OFWs).
HR 2318 also sought a scrutiny of the monetary policies of the Bangko Sentral ng Pilipinas (BSP) to aid in formulating policy recommendations that will “enhance economic competitiveness and protect vulnerable sectors.”
The peso and other world currencies have been strengthening against the US dollar after US President Donald Trump announced in April 2025 the implementation of sweeping tariffs on imports, triggering uncertainties about the future direction of the US economy.
In his resolution, Rodriguez argued that the strong Philippine peso adversely affects the country’s export competitiveness and the viability of local industries, particularly agriculture and manufacturing, by making exports more expensive and imports cheaper, thereby leading to trade deficits and economic imbalances.
“… local exporters and manufacturers are disadvantaged by a strong peso as it makes their products more expensive in the international market, leading to reduced demand and potential job losses,” he pointed out.
Moreover, Rodriguez said the BPO sector, a major contributor to employment and foreign exchange earnings, “faces challenges due to a strong peso, which increases operating costs and reduces competitiveness of Philippine-based services in the global market.”
At the same time, the peso value of remittances sent by OFWs is being reduced, “thereby diminishing the purchasing power of their families and potentially affecting domestic consumption, which is a significant driver of the Philippine economy,” he argued.
The lawgiver stressed the need to assess the current monetary policies of the BSP, particularly its exchange rate policy, and explore the feasibility of measures that will mitigate the adverse effects of a strong peso.
Earlier, Philexport President Sergio R. Ortiz-Luis Jr. said that a strong currency and Trump’s tariff policy are placing exporters at a disadvantage. He referred to it as “a double whammy” that could erode the competitiveness of Philippine goods in the global market.
He said that “a quiet discussion is ongoing to determine what is the real exchange rate to recommend the Bangko Sentral”.
Toti Chikiamco, an economist and entrepreneur, in a recent opinion piece in a newspaper said the most important economic reform the government can do is to reverse the strong peso and undervalue the currency.
“Weakening the peso relative to the dollar and other foreign currencies will stimulate exports, protect local industries from dumping of cheap Chinese and other imported goods, increase the incomes of Overseas Filipino Worker (OFW) families, and make the Philippines more attractive to foreign investments,” he said.
A strong peso, on the other hand, will undercut the Philippines’ tariff advantages under the Trump Liberation Day plan and negate all the free trade agreement benefits the government is forging with the European Union, Canada, United Arab Emirates, and other countries, he added.
Rodriguez suggests that the House inquiry be conducted by the committees on banks and financial intermediaries, economic affairs, overseas workers affairs, trade and industry, and information and communications technology.
He said the committees may come up with “informed policy recommendations that will promote economic stability, protect vulnerable sectors and ensure inclusive growth.”
HR 2318 has been pending with the Committee on Rules since June 9.
