Senior Deputy Majority Leader and Ilocos Norte 1st District Rep. Sandro Marcos on Tuesday claimed that the Philippine peso has becomes not because it is a weak currency, but because the United States (US) dollar is strong now.
In an interview with local media in Ilocos Norte, the presidential son explained that the US dollar is considered to be a safe haven for many people during times of crises like the COVID-19 pandemic and the Russian invasion of Ukraine.
"The peso is not weak, because the peso is weak. The peso is weak because the dollar is strong," he said.
"The dollar is strong for two reasons: kapag may krisis po sa ating mundo, the impression that investors, consumers, and shareholders get is that the dollar is the safest currency to get against all other currencies. So ang nangyayari ay lahat ng mga tao kapag may krisis ay bumibili ng dollar. Kapag binibili ‘yong dollar, ang demanda ng dollar tumataas, which means against other currencies it becomes stronger," he continued.
[The dollar is storng for two reasons: when we have worldwide crisis, the impression that investors, consumers, and shareholders get is that the dollar is the safest currency to get against all other currencies. So what happens is a lot of people during crises buy dollar currencies. If it is being sought after, the demand for dollar increases, which means against other currencies it becomes stronger.]
The neophyte lawmaker said that the US dollar is even stronger compared to other currencies.
He also noted that it’s not only the Philippine peso sinking to record lows against the dollar, pointing out that the British pound and Japanese yen have lost a lot of their value in recent months.
"Ngayon kung nakikita mo ang trend ng USD sa trend ng mga iba’t ibang currency — ang British pound, ang euro, ang yen, ang yuan, ang trend po ay ang dollar gumagano’n (tumataas). Lahat ng ibang currency lalo na sa Asya, lalo na sa Europa, lalo na sa UK, ay gumagano’n (bumababa)," Marcos said.
[If you’ll see the trend of the USD compared to other currencies — the British pound, the euro, yen, and yuan, the trend is that USD rises. All the other currencies, especially in Asia, Europa, and even the United Kingdom are plummeting.]
"So there’s an inverse relationship, it is not because there is anything wrong with the peso domestically, it’s just internationally, dahil sa lahat ng nangyayari, dahil sa giyera, ang peso ay humihina against the (US) dollar. Pero kung ang pag-aaralan ho ay ang peso against the yuan, peso against the yen, peso against the British pound, makikita mo medyo stabilized," he added.
[So there’s an inverse relationship, it is not because there is anything wrong with the peso domestically, it’s just internationally, because of everything that has been happening, the peso is weaker than the US dollar. But if you compare the peso against the yuan against the British Pound, it is quite stabilized.]
As of Monday, October 10, the Philippine peso hit P59 against the dollar.
Meanwhile, the statement of Sandro Marcos continues to trend on social media as it garnered different reactions from netizens.
