Corruption and the peso’s growing vulnerability

Corruption and the peso’s growing vulnerability

The Philippine peso’s persistent devaluation reflects a convergence of global shocks and domestic structural weaknesses. While high import dependence, rising debt service and weak industrial competitiveness are widely acknowledged, this paper identifies corruption as a hidden accelerator of peso devaluation. The paper estimates that ₱8.8 trillion was lost to corruption from 2016 to 2025, eroding fiscal buffers, discouraging foreign direct investment, or FDI, and magnifying the peso cost of impor