Overseas Filipino workers (OFWs) will benefit financially in the near term as the Philippine peso continues to depreciate against the US dollar, continuing its fall from a peak in May 2025. Families back home now have more purchasing power because to the conversion of remittances made in foreign currencies into pesos.
This adjustment in currency rates has lessened the impact of rising inflation in the Philippines for many OFWs, especially those who are located in the US, the Middle East, and Europe. Economists note that while the peso’s depreciation has been relatively modest, it has made noticeable impacts on household budgets, education, healthcare, and small investments.
Financial experts advise against enjoying the trend too much, though. “The peso’s weakness is largely driven by external factors such as rising US interest rates, geopolitical tensions, and a widening trade deficit,” explained economist Joanna Tan. “If these continue, the peso could remain under pressure—but any policy shift from the US Fed or domestic inflation control measures could reverse it quickly.”
Whether this trend endures will depend on global economic conditions, foreign investment flows, and the Bangko Sentral ng Pilipinas’ monetary stance. For now, OFWs are enjoying more value for every dollar sent, but they’re also advised to plan long-term and save smart amid the volatility.
