By: Sunstar Cebu Business
Published: October 1, 2020
Full Article: Philippine peso to continue strong performance while imports stay low
Snippets: THE general story of the global economy in 2020 has been bleak, one characterized by sharp downturns and pessimistic outlooks for the future. However, the Philippine currency appears to be reading from a different book entirely. The Philippine peso has provided a rare tale of success in Asia during the Covid-19 pandemic, with the currency in a unique position to thrive in the otherwise tough circumstances of the coronavirus outbreak.
In August, the Philippine Statistics Authority revealed data from June on the nation's status for imports and exports. Following a 26.9 percent annual decline in May, exports reduced by 13.3 percent in June. This compares favorably with a 24.5 percent fall of imports in June, which followed a 40.6 percent reduction in May. With imports falling more aggressively than exports, the Philippines' currency account was sent into surplus and gave the peso a platform for growth.
The best-performing currency in the region
The Philippine currency outperformed all of its regional contemporaries in terms of their performances against the US dollar throughout 2020. As of Sept. 10, the Philippine peso had climbed 4.3 percent against the US dollar, taking advantage of the greenback's uncharacteristic weakness during the pandemic.