1 Peso (José Rizal) – Philippines

In 2011, the Philippine peso (PHP) demonstrated notable resilience and appreciation, largely defying global economic headwinds. The year began with the peso trading at approximately 44.00 against the US dollar, and it strengthened throughout the year, ending near 43.80. This performance was driven by strong inflows from overseas Filipino worker (OFW) remittances, which consistently broke records, and a growing business process outsourcing (BPO) sector. These sources provided a steady stream of US dollars, bolstering the country's foreign exchange reserves and supporting the currency's value despite volatile capital flows in the region.

The Bangko Sentral ng Pilipinas (BSP), under Governor Amando Tetangco Jr., maintained a cautious and proactive monetary policy stance. While inflation remained manageable, averaging around 4.7% for the year, the BSP's primary concern was managing the peso's appreciation to protect the competitiveness of exports. The central bank intervened periodically in the foreign exchange market to smooth volatility and build up international reserves, which reached comfortable levels. Furthermore, the BSP kept its key policy rate low for much of the year to support economic growth, only beginning a tightening cycle in the latter months to pre-empt inflationary pressures.

However, the external environment posed significant challenges. The European sovereign debt crisis and concerns about a global slowdown created risk aversion among international investors, leading to episodic capital outflows from emerging markets like the Philippines. While the peso's fundamentals were strong, these episodes caused temporary volatility and depreciation pressures. Overall, 2011 was characterized by a peso that was fundamentally strong due to structural inflows, but whose trajectory was intermittently tested by external shocks, requiring careful management by the BSP to maintain stability.