Bank of America Sees More Firms Hedging FX Risks in Philippines

Companies in the Philippines are stepping up efforts to limit foreign exchange risks as global uncertainty fuels sharp swings in the peso, according to .

“A lot of them do hedging and it’s very helpful for them, especially with the peso becoming very volatile,” Vince Valdepenas , the bank’s country head, said in an interview on Friday. Firms have been actively using forwards, cross-currency swaps and offshore solutions offered by the bank, he said, with both local firms and multinationals increasing their activity amid currency turbulence.

The pickup in hedging reflects how Philippine corporates are managing risks tied to global interest rate shifts and geopolitical tensions which have roiled emerging-market currencies. over US tariff policies has now compounded existing market jitters, pushing companies to lock in exchange rates and protect margins against further volatility.

Bank of America expects the peso to strengthen to 57 per dollar by the end of 2026, after the currency slid to a record low of 59.50 in January. It traded at 57.73 against the greenback at 12:35 p.m. in Manila on Monday.

The US lender revived its in the Philippines in 2024, reinforcing its presence in a market where it was among the first overseas banks to establish operations. The lender is also evaluating plans to broaden its bonds business onshore.

Valdepenas “sees a gradual recovery story” for the Philippine economy this year. The Bangko Sentral ng Pilipinas is likely to keep its key interest rate steady for the rest of the year following its last week, unless the US Federal Reserve moves to ease policy more aggressively, he added.