Connect with us

Business and Economy

Philippine peso may build up to 49: $1

Published

on

The peso may manage to reach 49 if Brent Crude Oil Spot prices fall below (Pexels Photo)

The Metropolitan Bank & Trust Co. said on Monday that the Philippine Peso (PHP) may rise further to P49: $1 if the price of crude oil lowers in the world market amid the novel coronavirus disease (COVID-19) outbreak that started in December 2019. 

According to Metrobank research analyst Pauline Revillas, the peso may manage to reach 49 if Brent Crude Oil Spot prices fall below the $50 per barrel level. 

“A decline in the price of global crude oil could translate to lower demand for US dollars and thus an appreciation bias for the peso, and vice versa,” Revillas said in an interview with Philippine Star. 

Revillas noted that changes in the global oil prices can affect the inflation or deflation of the PHP. 

“Brent crude spot price and the dollar-peso rate have an inverse relationship albeit not a strong one,” Revillas said. 

From the end of 2019, Revillas said that the Bloomberg commodities data shows that Brent crude contract price fell to $54.8 per barrel, while the West Texas Intermediate (WTI) dropped to $50.5 per barrel from $67.31 and $59.88, respectively. 

Despite the potential impact that the COVID-19 outbreak can cause, Revillas said that crude oil prices are in its lowest level in more than a year. 

“The oil market continues to be whipped by updates on the fast-spreading virus, with some analysts saying that the current demand shock has not been seen since the 2008 financial crisis,” she said in the same interview.

China is the world’s largest oil importer and the second largest oil consumer, thus a potential slowdown in demand would have a significant impact on prices. 

As the world’s largest oil importer and the second largest oil consumer, the impact on oil price in China can have significant effects as the prices could potentially decline amid worries on the spread of the coronavirus. 

However, Revillas said that “it remains to be seen how the Organization of the Petroleum Exporting Countries (OPEC) would react” to the current COVID-19 situation. 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Maria in Vancouver

Lifestyle2 weeks ago

Nobody Wants This…IRL (In Real Life)

Just like everyone else who’s binged on Netflix series, “Nobody Wants This” — a romcom about a newly single rabbi...

Lifestyle3 weeks ago

Family Estrangement: Why It’s Okay

Family estrangement is the absence of a previously long-standing relationship between family members via emotional or physical distancing to the...

Lifestyle2 months ago

Becoming Your Best Version

By Matter Laurel-Zalko As a woman, I’m constantly evolving. I’m constantly changing towards my better version each year. Actually, I’m...

Lifestyle2 months ago

The True Power of Manifestation

I truly believe in the power of our imagination and that what we believe in our lives is an actual...

Maria in Vancouver4 months ago

DECORATE YOUR HOME 101

By Matte Laurel-Zalko Our home interiors are an insight into our brains and our hearts. It is our own collaboration...

Maria in Vancouver4 months ago

Guide to Planning a Wedding in 2 Months

By Matte Laurel-Zalko Are you recently engaged and find yourself in a bit of a pickle because you and your...

Maria in Vancouver4 months ago

Staying Cool and Stylish this Summer

By Matte Laurel-Zalko I couldn’t agree more when the great late Ella Fitzgerald sang “Summertime and the livin’ is easy.”...

Maria in Vancouver5 months ago

Ageing Gratefully and Joyfully

My 56th trip around the sun is just around the corner! Whew. Wow. Admittedly, I used to be afraid of...

Maria in Vancouver6 months ago

My Love Affair With Pearls

On March 18, 2023, my article, The Power of Pearls was published. In that article, I wrote about the history...

Maria in Vancouver6 months ago

7 Creative Ways to Propose!

Sometime in April 2022, my significant other gave me a heads up: he will be proposing to me on May...