Export-oriented firms need help with FX risks By Andrea E. San Juan
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XPORT-ORIENTED firms, especially smaller exporters, are in need of support in honing their financial literacy and hedging access as they face challenges in managing foreign exchange-related obligations, according to the head of the Philippine Economic Zone Authority (PEZA), the agency which oversees half of the country’s exports. PEZA Director General Tereso O. Panga raised this concern as he signaled that contrary to the notion that export-oriented firms
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US-LED TASK FORCE TELLS SHIPS TO REROUTE ON FIRST DAY OF NEW EFFORT TO REOPEN STRAIT OF HORMUZ
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stand to gain from a stronger dollar and a weaker peso, outbound shippers, particularly the smaller exporters, seem to be struggling amid periods of exchange rate volatility due to issues on financial planning, among others. “Yes, some Philippine exporters—particularly those with foreign currency-denominated debt—face challenges in managing FX obligations during periods of exchange rate volatility,” Panga said in an e-mail sent to the BusinessMirror. He explained that when the peso depreciates, the cost of servicing dollar- or yen-denominated
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loans increases in peso terms, putting pressure on cash flows even for export-oriented firms. “While exporters typically earn in foreign currency, mismatches can still arise due to timing differences, partial hedging, or when revenues are denominated in multiple currencies,” the PEZA chief also told this newspaper. “Smaller exporters and SMEs within PEZA zones are especially vulnerable, as they may have limited access to sophisticated hedging instruments or treasury management capabilities,” Panga said. The PEZA chief pointed out that rapid fluctuations—rather than
gradual movements—can strain financial planning and debt servicing schedules. According to Panga, while institutions such as the Bangko Sentral ng Pilipinas (BSP) have promoted risk management practices and deeper financial markets, from PEZA’s standpoint: “Continued support for financial literacy, hedging access, and stable macroeconomic policies remain essential to help exporters manage FX-related debt risks effectively.” In the January to February 2026 period alone, data obtained by the BusinessMirror from PEZA See “FX risks,” A2
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‘Cut imported inputs, shield farms from geopolitics’
By Andrea E. San Juan @andreasanjuan
OODY’S Analytics said Philippine economy likely picked up in the first quarter and grew by 3.9 percent, but inflation may have also accelerated to 5 percent in April. In its weekly Asia Pacific Economic Preview, Moody’s Analytics said “March-quarter GDP data from Indonesia and Hong Kong should show slowing yearon-year growth, but data from the Philippines will likely show the opposite.” The New York-based research institution said that while it expects the growth rates of Hong Kong and Indonesia to have slowed to 2.8 percent and 5.1 percent, respectively, in the first quarter, it expects Philippine economy to
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EDUCING reliance on imported inputs can shield the local agriculture sector from external volatility caused by geopolitical tensions, a unit of the University of Asia and the Pacific (UA&P) said. Despite the Middle East being geographically distant from the Philippines, disruptions in global value chains triggered by escalating tensions between the United States and Iran have translated to surging farm prices and renewed pressure on food costs for Filipinos. For UA&P Center for Food and Agribusiness (CFA) Principal Agribusiness Specialist Ditas Macabasco, such an effect on the local farm sector was “not surprising.” “Philippine agriculture is deeply integrated into global input and commodity markets, with heavy reliance on imported fuel, fertilizer, and feed materials,” Macabasco said in the UA&P CFA’s latest briefer. The Middle East war has caused hikes in local pump, feed, and fertilizer prices, affecting transport and production costs across the value chain. “These cost pressures accumulate along the supply chain and are ultimately reflected in higher food prices at the consumer level. The result is a squeeze on producer margins alongside renewed upward pressure on retail food prices,” Macabasco said. While the government has issued a raft of interventions to cushion the conflict’s impact on the local farm sector, she stressed that long-term solutions are more crucial. “In the short term, government responses typically focus on mitigating immediate impacts—through targeted subsidies, buffer stocking, or adjustments in import policy [...] But
have grown to 3.9 percent in the first three months of the year. “By contrast, we expect a pickup in growth in the Philippines to 3.9 percent year-on- year,” Moody’s Analytics noted, comparing this to the 3 percent GDP growth of the Philippine economy in the previous quarter. While Moody’s did not expound on the factors behind this, Philippine Institute for Development Studies (PIDS) Senior Research Fellow John Paolo Rivera said he See “Inflation,” A2
ADB TO ASPAC: ISOLATION HAS NO PLACE IN VOLATILE ERA By Bless Aubrey Ogerio
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N this fragmented world, traditional and isolated development responses will fail. To survive and thrive in this new era, we must build deeply connected and resilient systems.” This is how Asian Development Bank (ADB) President Masato Kanda opened the institution’s 59th Annual Meeting on Sunday, with a call for Asia and the Pacific to strengthen crossborder links in response to ris-
ing global fragmentation and economic uncertainty. Kanda said countries in the region can no longer rely on isolated development strategies, and stressing that the choices made at what he described as a “new crossroads” would shape outcomes for future generations. “The decisions we make at this new crossroads will secure the future for the next generation,” Kanda saId in his opening speech. Current challenges, Kanda See “Isolation,” A2
By Ada Pelonia
STEEPER STEEL PRICES Steel bars lie ready for use at a housing site in Manila as factory-gate prices rose 2.5 percent in March, a sharp
uptick driven by higher petroleum costs and stronger manufacturing demand for electronics and metals, according to the Philippine Statistics Authority. NONIE REYES
See “Geopolitics,” A2
PESO EXCHANGE RATES n US 61.5400 n JAPAN 0.3927 n UK 83.7313 n HK 7.8547 n CHINA 8.9931 n SINGAPORE 48.3425 n AUSTRALIA 44.4196 n EU 72.2541 n KOREA 0.0418 n SAUDI ARABIA 16.4093 Source: BSP (May 4, 2026) TEAM GENERAL CLASSIFICATION TOP 3
STAGE 6 May 4, 2026 (Monday)
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