10 Pesos – Philippines

As of 2026, the Philippine peso (PHP) operates within a managed float regime under the Bangko Sentral ng Pilipinas (BSP), continuing its trajectory from the early 2020s. The currency's value is primarily influenced by a combination of domestic economic performance, overseas Filipino worker (OFW) remittances, business process outsourcing (BPO) receipts, and the broader dynamics of the US dollar. Following the global economic adjustments post-pandemic, the BSP has maintained a vigilant stance, utilizing its monetary policy tools and foreign exchange reserves to mitigate excessive volatility and maintain macroeconomic stability. The key focus remains on managing inflationary pressures while supporting growth, with the peso's fluctuations reflecting the ongoing balance between these priorities.

The external sector presents a mixed picture. Sustained strong inflows from remittances and the resilient services export sector provide fundamental support for the currency. However, these are counterbalanced by a persistent trade deficit, driven by the nation's need to import energy, capital goods, and food. Furthermore, the monetary policy divergence between the BSP and the US Federal Reserve continues to be a significant short-term driver of peso movement. Higher interest rates in the United States can lead to capital outflows and peso depreciation, a challenge the BSP must navigate carefully to avoid destabilizing the foreign exchange market while also protecting domestic growth.

Looking ahead, the peso's stability in 2026 is closely tied to the government's success in attracting foreign direct investment (FDI) into high-value sectors like manufacturing and renewable energy, which could improve the structural trade balance. Digitalization efforts in finance and a potential sovereign green bond issuance also offer avenues for strengthening the currency's profile. Ultimately, the BSP's credibility and its ability to anchor inflation expectations are seen as the bedrock for maintaining investor confidence and ensuring the peso remains a stable store of value amidst global financial uncertainties.