MANILA – Albay Representative Joey Salceda said on Wednesday the Philippines must brace for the possibility that the peso may weaken to as much as P65 against the US dollar. 

Salceda, who was an economic adviser to then-President Gloria Macapagal-Arroyo, said the peso’s movement will depend on external factors such as what the US Federal Reserve will do in the coming months.

He said this was a possibility based on historical records and the outlook on global currencies.

The peso has been plunging against the dollar, setting new historic lows almost every day for the last week. Analysts have said it may hit P60 to $1 in the near term.

“We need an economic transformation that will essentially encourage more direct foreign investments,” said Salceda.

He also said lawmakers have already approved many laws like the Foreign Investments Act, CREATE Law, Public Sevices Act, and the Retail Trade Liberalization Law, yet investors are still not coming in.

“Binuksan na natin lahat ng pinto at bintana ng bahay, walang pumasok sa restaurant. Sarapan natin ang luto,” said Salceda refering to government should improve domestic issues to attract more foreign investors.

Salceda said for his part, he wants to amend the EPIRA law to lower electricity rates, as the country’s high power rates are not attracting investments.