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Banking

Daily intelligence on the Banking beat

Wednesday, September 9, 2026

Issue #74

Peso hits record low P62.40 as trade gap weighs

The Philippine peso closed at a fresh record low of P62.40 against the US dollar on September 1, driven by a wide trade deficit, high oil prices, and global jitters. Central bank officials and analysts weighed in on the currency's slide, while other financial developments included new digital banking initiatives and corporate moves.

By the MMI Banking Desk

Peso hits record low P62.40 as trade gap weighs

The Philippine peso slid to a fresh record low of P62.40 against the US dollar on Tuesday, September 1, extending its decline for a third straight trading session as renewed dollar strength, high oil prices, and the country's persistent trade deficit weighed on the currency(https://businessmirror.com.ph/2026/09/01/peso-hits-new-all-time-low-on-global-jitters)(http://malaya.com.ph/business/business-news/peso-hits-fresh-record-low-at-62-401). The closing rate surpassed the previous record low of P62.265 logged on August 28, with the peso losing 13.5 centavos in a single day(http://tonite.abante.com.ph/piso-sadsad-na-naman-kontra-dolyar/news)(http://filipinotimes.net/latest-news/2026/09/01/peso-sinks-to-new-record-low-of-%E2%82%B162-40-per-dollar). Financial markets were closed on Monday for the National Heroes Day holiday, so Tuesday's trading followed Friday's session(http://malaya.com.ph/business/business-news/peso-hits-fresh-record-low-at-62-401). The peso opened at P62.25 before weakening through the day to close at its session low(http://tonite.abante.com.ph/piso-sadsad-na-naman-kontra-dolyar/news)(http://filipinotimes.net/latest-news/2026/09/01/peso-sinks-to-new-record-low-of-%E2%82%B162-40-per-dollar).

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. acknowledged the difficulty of defending the currency, telling a Senate budget panel that the country's trade deficit — running at about 13 percent of gross domestic product — makes it hard to prevent the peso from weakening(http://tribune.net.ph/2026/09/01/remolona-backs-pax-silica-to-support-exports-peso-2). "It is difficult to stop the peso's fall. The BSP can slow the peso's depreciation, but it cannot fix the exchange rate. We will run out of reserves," Remolona said(http://filipinotimes.net/latest-news/2026/09/01/peso-sinks-to-new-record-low-of-%E2%82%B162-40-per-dollar). He pointed to initiatives such as [Pax Silica](https://media-meter.com/report-library/pax-silica-debate-dominates-as-church-lawmakers-raise-concer "Pax silica debate dominates as church lawmakers raise concer"), a US-led initiative on artificial intelligence and supply-chain security that the Philippines joined in April, and the Luzon Economic Corridor as potential ways to strengthen exports(http://tribune.net.ph/2026/09/01/remolona-backs-pax-silica-to-support-exports-peso-2).

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