Marcos Won’t Spend All Reserves on Peso, Sees 6% Growth by 2028

Ferdinand Marcos Jr. Photographer: Lisa Marie David/Bloomberg Photo by Lisa Marie David /BloombergArticle content(Bloomberg) — Philippine President Ferdinand Marcos Jr. signaled that his government will tolerate weakness in the peso, saying there is a limit to their defense of the currency as market forces drive up the dollar.Sign In or Create an AccountEmail AddressContinueor View more offersArticle content“I think it would be even futile to try to spend all our foreign reserves on defending the peso,” he said in an exclusive interview with Bloomberg Television’s Haslinda Amin in Manila on Tuesday. “We also recognize that there’s only so much you can do because the dollar’s going to move the way it does.”Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe peso is among Asia’s hardest-hit currencies, having weakened through the psychologically important level of 60-per-dollar for the first time in history last week. High oil prices are driving up the cost of imports for an economy that sources almost 100% of its oil from the Middle East.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentMarcos said his government is having to spend money to cushion lower- and middle-income families from the impact of the US and Israeli war on Iran, which has driven oil prices to above $110 a barrel. Asked if the Philippines could reach a pace of 8% growth by the end of his single six-year term in 2028, Marcos said that would be “tough,” and that even near-term goals need to be rethought. Article content“With the war in the Middle East, those have to be redrawn — everything has to be redrawn,” Marcos said of the forecasts, adding that the recent spike in energy prices came after oil had been “fairly steady at $72 per barrel.” Article contentEven if the war stopped today, crude oil won’t immediately sink back to around $70 per barrel, Marcos said, with the crisis having created uncertainty and risk factors that will linger. Article contentArticle content“The impact of the war is really on middle-income and lower-middle-income countries,” he said. Article contentInvestors have been pulling money from emerging markets like the Philippines, whose benchmark stock index is down more than 10% since the US attacked Iran. Article contentStill, foreign-exchange reserves hit a record-high $112.7 billion last month, giving authorities a degree of firepower to support the peso that’s been under pressure along with other Asian currencies.Article contentThe government is seeking to diversify energy supplies and has ordered the transport agency to delay hiking ticket prices for consumers, though a prolonged war and energy crisis could hurt businesses and consumers alike. Article contentGrowth had already been under pressure. After Marcos announced a probe into a massive public works scandal in July, the Philippines’ once high-flying economy stuttered as protests and slowing state spending hit consumer and investor confidence. The economy expanded just 3% in the fourth quarter of 2025, well below the pace of neighbors China, Indonesia, Malaysia and Vietnam.Article contentIn January, well before the war on Iran, the Philippines cut this year’s growth target to 5% to 6% from a previous goal of 6% to 7%. Trending Saudis and UAE Take Steps Toward Joining Iran War, WSJ Reports PMN Business 'Bleeding businesses': Number of active companies that depend on U.S. is dropping in Canada Economy Garry Marr: Why it could be the right time to walk away from your real estate Personal Finance Canada not tracking foreign students after visas lapse, auditor general says Economy Subscriber only. Hey Canadians, want to build a pipeline? Your pension might just help you do it Subscriber only Investor Article contentBut the president is confident the economy will be expanding by 6% by the end of his time in office, pointing to investment and a young and increasingly upskilled workforce. He cited the increasing value of semiconductors, which are packaged and exported from the Philippines.Article content“We have moved up the value chain from pure fabrication to design, which has put us in a good position for the advent of data centers and AI,” Marcos said. “We have restructured our tax incentives for investors, worked hard on the ease of doing business, brought down transportation costs, and digitalization is key.”Article content—With assistance from Manolo Serapio Jr. and Neil Jerome Morales.Article contentShare this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Saudis and UAE Take Steps Toward Joining Iran War, WSJ Reports PMN Business 'Bleeding businesses': Number of active companies that depend on U.S. is dropping in Canada Economy Garry Marr: Why it could be the right time to walk away from your real estate Personal Finance Canada not tracking foreign students after visas lapse, auditor general says Economy Subscriber only. Hey Canadians, want to build a pipeline? Your pension might just help you do it Subscriber only Investor