Philippine peso banknotes and coins. Photo: Marek Ślusarczyk (Tupungato) / Wikimedia Commons (CC BY 3.0)
A weak peso gives OFW families more pesos per dollar, but in 2026 prices have risen faster: the peso hit a record-low close of P62.86 per dollar on September 14, while headline inflation was 6.1 percent in August and rice inflation 19.4 percent. The result is that remittances still grow, yet each peso buys less rice, fuel and power than a year ago.
Money sent home by overseas Filipinos is a lifeline for millions of households. The numbers below are from the Bangko Sentral ng Pilipinas (BSP), the Philippine Statistics Authority (PSA) and news reports of their releases.
Are OFW remittances still growing in 2026?
Cash remittances from overseas Filipinos reached US$3.24 billion in July 2026, up 1.9 percent from a year earlier and the highest monthly level since December 2025, the BSP reported. For January to July, cash remittances totaled US$20.389 billion, up 2.3 percent, and personal remittances, which also count informal channels and remittances in kind, totaled US$22.726 billion (BusinessWorld). The United States accounted for 39.7 percent of cash remittances in that period, followed by Singapore at 7.1 percent and Saudi Arabia at 6.3 percent (FintechNews.ph). The BSP expects cash remittances to grow 2.7 percent to US$36.6 billion this year, after a record US$35.63 billion in 2025.
How weak is the peso against the dollar?
The peso closed at P62.86 per U.S. dollar on September 14, 2026, a record low close (BusinessMirror). BusinessWorld noted that the weak peso also gave some support to remittances, since each dollar converts to more pesos.
Why doesn’t a weak peso help OFW families more?
A dollar that converts to more pesos helps only if those pesos buy as much as before. The PSA reported headline inflation of 6.1 percent in August 2026, down from 6.2 percent in July and from a three-year high of 7.2 percent in April. The January to August average was 5.2 percent, above the government’s 2 to 4 percent target (Rappler). Details from the same report:
- Rice inflation was 19.4 percent in August, the highest since July 2024. Regular-milled rice averaged about P46.20 per kilo in Metro Manila and P49.85 outside the capital region, according to National Statistician Claire Dennis Mapa.
- Diesel prices were 55.7 percent higher than a year earlier and gasoline 36.2 percent higher. Transport inflation was 13.5 percent.
- Electricity inflation eased to 14.4 percent from 16.9 percent in July.
- Inflation for the poorest 30 percent of households was 8.2 percent.
What is the government doing about prices?
The BSP’s Monetary Board raised its benchmark rate by 25 basis points to 5 percent on August 27, its third straight increase, to keep high inflation from becoming entrenched. The government continues its P20-per-kilo rice program, though Mapa said subsidized rice is not available at every outlet, and the Department of Economy, Planning, and Development cited more than 700 Kadiwa outlets nationwide (Rappler).
What does this mean for OFW families?
Remittances support household consumption, as the BSP has said, but the same dollars now cover rice, fuel and power that cost much more than a year ago. Inflation is easing from its April peak, but the BSP’s own forecast has it averaging 6.1 percent this year and 5.4 percent in 2027.
For practical ways to stretch every padala, see our guides to the cheapest way to send money to the Philippines and the best high-interest digital banks. OFWs dealing with family legal paperwork may also want to read how the Supreme Court eased foreign divorce recognition.
Frequently asked questions
Does a weak peso help OFW families?
Partly. Each dollar converts to more pesos, which BusinessWorld noted supported remittances, but inflation of 6.1 percent in August 2026 and 19.4 percent rice inflation eat into that gain.
How much did OFWs send home in 2026?
Cash remittances totaled US$20.389 billion from January to July 2026, up 2.3 percent, according to BSP data reported by BusinessWorld.
What was the peso’s record low in 2026?
P62.86 per U.S. dollar at the close on September 14, 2026 (BusinessMirror).
Where do most remittances come from?
The United States, with 39.7 percent of cash remittances from January to July 2026, followed by Singapore (7.1 percent) and Saudi Arabia (6.3 percent).
Featured photo: Philippine peso banknotes and coins. Marek Ślusarczyk (Tupungato) / Wikimedia Commons (CC BY 3.0).
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