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The Philippine government is recalibrating its international borrowing plans in response to evolving global economic conditions. With an anticipated issuance of $3.5 billion in overseas debt this year, the country aims to balance its financial strategy by potentially increasing domestic borrowing. Finance Secretary Ralph Recto highlighted that while the majority of the planned bond issuance will be denominated in US dollars, discussions with eight banks are underway to facilitate these transactions. This shift comes as a reaction to heightened uncertainties and ongoing rate adjustments.

Despite external challenges, the Philippines remains optimistic about its economic resilience. The nation expects a growth rate of at least 6% for the year, driven by robust household consumption and substantial liquidity from domestic savings. According to Recto, inflation and interest rates could be influenced by potential tariff policies from the new US administration. However, the finance secretary emphasized that ample remittances from overseas workers and other dollar sources mitigate the pressure to secure additional foreign funding. Geopolitical tensions pose the most significant risk, yet the country's economy is expected to remain stable.

Recto also addressed concerns regarding the peso’s performance, stating that authorities intervene only during periods of volatility. The finance chief believes that market forces should determine the currency's value, reflecting a hands-off approach to currency management. While the peso has weakened slightly against the dollar, it aligns with regional trends influenced by a strong greenback. The government's focus on sustainable growth and prudent fiscal policies underscores its commitment to maintaining economic stability and fostering long-term prosperity.