Commerzbank economists Dr. Henry Hao and Moses Lim note USD/PHP rose to 60.10 after President Marcos declared a national state of emergency to tackle surging energy prices. The move expands powers to secure fuel and cap costs, while intervention risk has eased as authorities deem FX reserve defence "futile." The Philippine Peso (PHP) is down 2.1% versus the Dollar so far in 2026.

State of emergency shifts FX dynamics

"President Ferdinand Marcos Jr. declared a national state of emergency yesterday due to surging energy prices. This expands executive powers to secure fuel supplies and fast track policies aimed at shielding consumers and businesses from higher energy costs. "

"A state of national emergency was last declared in 2020 during the COVID-19 pandemic. President Marcos said the order was a “precautionary tool” to provide flexibility against global commodity price shocks. The state of emergency will last one year unless extended or suspended by the President."

"Under this state of emergency, a committee will be formed to directly procure energy commodities, food, medicine, and other necessities. The Department of Energy has also been ordered to tighten its oversight on energy prices and crackdown on profiteering."

"Additionally, the Department of Transport will subsidise fuel and commuter fares, suspend aviation taxes, and extend the operating hours for public transportation. The government has also temporarily mandated a four-day work week to curb energy use."

"USD-PHP rose 0.3% to 60.10 yesterday. The pair had initially fallen at market open but closed higher on the declaration of the state of emergency. Intervention risk has fallen as President Marcos said it would be "futile" to spend FX reserves to aggressively defend PHP. Year-to-date, PHP is down 2.1% vs the USD."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)