“NG’s total debt increased by P495.54 billion or 3.8% primarily due to peso depreciation against the US dollar and the net issuance of government securities to support the budget,” the bureau said.
“The increment in the level of external debt was due to the P179.69 billion impact of local currency depreciation against the USD. This was partially offset by the P30.62 billion effect of third-currency depreciation against the USD and net repayment amounting to P10.8 billion,” it said.
As of the end of August, the peso stood at P56.171 to $1 and P58.646 in September.
The peso dipped to a record low of P59 in October before easing to around the P58 to $1 level in recent weeks.
Analysts expect the inflow of remittances and business process outsourcing (BPO) receipts in the fourth quarter to temporarily support the peso.
However, the US Federal Reserve’s 75-basis point interest rate hike on Nov. 2 is seen to fuel the dollar rally that could result in further depreciation of other currencies including the peso. (Jeanne Michael Penaranda)