The riyal is officially pegged to the IMF's special drawing rights (SDRs). In practice, it is fixed at 1 U.S. dollar = 3.75 riyals, which translates to approximately 1 riyal = 0.266667 dollar.
March 31, 2026
Key Developments Affecting the Philippine Peso (PHP):
1. Peso Weakens Past ₱60 to US Dollar
In March 2026, the Philippine peso fell below ₱60 per US dollar, reaching one of its lowest points in history. This decline is attributed to global market volatility, geopolitical tensions, and a stronger US dollar drawing investors to safer assets. (advocatesomi.com)
2. BSP Maintains Interest Rates Amid Inflation Concerns
The Bangko Sentral ng Pilipinas (BSP) kept interest rates at 4.50% in February 2026, despite expectations of a 25-basis-point cut. This decision reflects a cautious approach to balance inflation control and weak economic growth. (ainvest.com)
3. Projected Economic Growth and Inflation
The Philippine economy is expected to grow by 5.2% in 2026, driven by investments and consumption recovery. However, inflation is projected to rise and approach the upper end of the 2–4% target range by mid-2026 due to base effects and potential increases in global commodity prices. (philstar.com)
4. Balance of Payments Deficit Forecasted
The BSP forecasts a balance of payments deficit until 2026, primarily due to a sustained trade-in-goods gap and slower growth in foreign direct investments. Despite this, the country maintains ample US dollar reserves to cushion against external shocks. (pna.gov.ph)
These factors collectively influence the Philippine peso's performance, affecting importers, exporters, and individuals engaged in international transactions.
