‘Peace deal offers relief, bares PHL weak spots’ By Bless Aubrey Ogerio
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HE peace agreement between the United States (US) and Iran may ease cost pressures on Philippine manufacturers, but it also underscores the country’s vulnerability to external shocks compared with some of its neighbors, according to the Federation of Philippine Industries (FPI). FPI chairman Elizabeth Lee said the easing of tensions in the Gulf region provides businesses with an opportunity to recover from weeks of uncertainty that had threatened global energy supplies and raised concerns over higher transport and logistics costs. “This is good news—cautiously good news. The US-Iran peace deal gives the Philippines breathing room, but it also exposed how vulner-
able we remain compared with our ASEAN neighbors,” Lee said in a statement on Tuesday. The development came after Iran last week threatened to close the Strait of Hormuz and target vessels attempting to pass through it following US military strikes. Yet, on Monday, US President Donald Trump announced that Washington and Tehran had signed a preliminary agreement aimed at ending the conflict, although negotiations toward a lasting ceasefire are still ongoing. According to FPI, falling global oil prices following the announcement are expected to gradually ease cost pressures that rippled through transport, logistics and cold-chain operations. “The easing won’t be instantaneous, but the direction is clear and constructive,” Lee said. “Diesel-linked costs will soften gradually,
giving manufacturers room to rebuild margins, stabilize production schedules, and restore predictability,” she added. A sustained reopening of the Strait of Hormuz could also support a stronger peso, providing relief to manufacturers that rely heavily on imported raw materials, Lee said. The Philippine peso climbed back to the 60-per-dollar level on Monday, closing at P60.48 against the US dollar—its strongest finish since May 7, according to Bankers Association of the Philippines data. “Importers of raw materials—particularly in chemicals, metals, packaging—will feel cost relief as the peso recovers,” she said. Despite the positive outlook, Lee noted that the recent crisis highlighted structural weaknesses in the economy, particularly its exposure
to imported fuel and external supply disruptions. According to FPI, several Asean economies were able to absorb the shock more effectively because of their deeper industrial bases and stronger economic resilience. “Relief is coming—as long as the peace holds and supply routes stay open. This stability gives businesses the space we need to rebuild margins, restore predictability, and strengthen our footing,” Lee said. The business group also said the temporary easing of geopolitical risks could create a more favorable environment for foreign investments, but cautioned that the country must address longstanding domestic challenges to fully benefit from any improvement in investor sentiment. Among the measures cited by FPI were accelSee “Peace,” A2
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Wednesday, June 17, 2026 Vol. 21 No. 246
P25.00 nationwide | 2 sections 28 pages | 7 DAYS A WEEK
By Reine Juvierre S. Alberto
HE government is eyeing the issuance of bonds to small investors in the second half of the year to secure funding for its projects and programs and to broaden participation in the debt market. In a press chat on Tuesday, Finance Secretary Frederick D. Go told reporters that the government is closely monitoring market conditions and assessing the appropriate timing for a possible RTB issuance. “We may be issuing retail treasury bonds in the second half of the year,” Go said. “Any decision regarding any issuance would take into account prevailing market developments and the government’s financing requirements,” he added. Last year, the Bureau of the Treasury issued 5-year RTBs in August and sold a total of P507.16 billion, of which P425.51 billion was raised as new money and P81.65 billion came from the bond exchange program.
The bonds fetched an average yield of 5.943 percent and a coupon rate of 6 percent. RTBs are considered low-risk investment instruments as they allow retail investors to put in at least P5,000 and provide quarterly interest payments over the life of the bond. These debt papers are accessible via online channels and branches of selling agent banks nationwide, and made available via GCash last year.
T-bonds auction
MEANWHILE, the Treasury made a full award of reissued 7-year Treasury bonds (T-bonds) on Tuesday and raised a total of P40 billion due to strong market demand. See “RTB,” A2
PHL SEEN TO DRAW BIGGEST GAIN FROM PEACE DIVIDEND By Justine Xyrah Garcia
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HE Philippines is poised to be the biggest beneficiary in Asia of lower oil prices after the United States and Iran reached a peace deal, the research arm of brokerage giant Nomura Holdings Inc.’s said. Nomura Global Markets Research estimated that every 10-percent drop in global oil prices—if the peace agreement leads to the reopening of the Strait of Hormuz—could shave 0.5 percentage point off Philippine inflation. This would mark the largest inflation reduction among Asian economies monitored by Nomura and exceeds the assumed regional average decline of 0.2 to 0.3 percentage point. “[Consumer Price Index] inflation benefits will likely take two to three months to materialize. We expect the impact of lower oil prices to be most visible in
the Philippines, which has market-determined fuel prices,” the Japan-based think tank said in its new report. Latest data from the Philippine Statistics Authority (PSA) showed that the country’s inflation slightly eased to 6.8 percent in May from the three-year high 7.2 percent recorded in April. Despite the slowdown, average inflation in the first five months of the year stood at 4.5 percent, remaining above the Bangko Sentral ng Pilipinas’s (BSP) 2- to 4-percent target range. According to Nomura, lower global oil prices would lead to a “faster inflation decline” and ease pressure on the Philippines’s current account. Assuming an average Brent crude price of $93.9 per barrel in 2026, Nomura projects fullyear Philippine inflation to ease to 5.5 percent, while economic growth could reach 4.6 percent. See “Dividend,” A2
MANILA, BERLIN COOPERATION German President Frank-Walter Steinmeier, center left, with his wife Elke Büdenbender, left, and President Ferdinand R. Marcos Jr. with First Lady Liza
Araneta-Marcos pose for pictures in Manila on Tuesday, June 16, 2026, following a series of high-level engagements that reaffirmed the continued strengthening of Philippines–Germany relations, with both sides emphasizing expanded cooperation in defense, maritime security, trade and investment, renewable energy, labor, and regional stability under a shared commitment to a rules-based international order. The visit generated concrete economic outcomes, including the signing of a Lease Agreement between LIPAD Corporation and Lufthansa Technik Philippines, reinforcing aviation and investment linkages between the two countries. Marcos cited Germany’s support for peace initiatives in Mindanao and the Philippines’s advocacy of international law in the South China Sea. EZRA ACAYAN/
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Qatar OFWs front-load remittances By Andrea E. San Juan
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HE money sent home by Filipinos working in conflictstricken Middle East may have declined in April, but Filipino workers in Qatar took advantage of the depreciation of the Qatari Riyal, as it was the lone country in the region where migrant workers were able to send more money to their families in the Philippines amid the second full month of the conflict, an analyst pointed out. Data from the Bangko Sentral ng Pilipinas (BSP) showed that cash remittances from Middle East countries plunged to $491.569 million in April 2026. This is 13.14 percent lower than the $565.91 million in March 2026 or in the previous month.
Among the top five remittancesending countries from the Middle East, it seems that Filipinos in Qatar were able to send more money back home while Filipinos working in the four other economies sent less. “Unsurprisingly, monies from Saudi Arabia, the United Arab Emirates and Kuwait slowed down but the ones from Qatar were higher,” Jeremaiah Opiniano, executive director of the Institute for Migration and Development Issues (IMDI) and professor at the University of Santo Tomas told the BusinessMirror on Monday. Data from the central bank showed that remittances from Kuwait, Oman, Saudi Arabia and United Arab Emirates declined. The money sent home by Filipi-
nos working in Kuwait declined to $46.22 million, 0.55 percent down from the $46.48 million in the previous month. Remittances from Filipinos working in Oman declined to $29.328 million, down 10.45 percent from the $32.750 million in March. Money sent home by Filipinos working in Saudi Arabia saw the smallest contraction at 8 percent, as they sent $179.20 million in April compared to $194.794 million the previous month. Meanwhile, remittances from Filipinos working in the United Arab Emirates (UAE) saw the steepest decline of 28.71 percent as they sent $117.07 million in April, compared to the $164.225 million in the previous month.
In contrast, Filipinos working in Qatar sent more money back home, which is unusual based on historical data from the central bank as these workers have been sending less amount of money back home during the March to April season since 2019. Opiniano noted this is due to currency exchange rates dynamics. “In general, month-on-month exchange rates in these five Middle East countries did not move much but the most visible movement was the depreciation of the Qatari Riyal to the US dollar: up 1.029 percent month on month,” he said. Meanwhile, Opiniano said the Philippine peso to the dollar experienced the most visible depreciation after the currency reached See “Qatar,” A2
PESO EXCHANGE RATES n US 60.5860 n JAPAN 0.3779 n UK 81.2701 n HK 7.7333 n CHINA 8.9667 n SINGAPORE 47.2553 n AUSTRALIA 42.8404 n EU 70.2373 n KOREA 0.0400 n SAUDI ARABIA 16.1459 Source: BSP (June 16, 2026)