By the staff
The Bangko Sentral ng Pilipinas downplayed near‑term risks from geopolitical tensions in Venezuela but warned that domestic corruption scandals are weighing more heavily on sentiment and growth.
“I think the short term impact is very small. Venezuela has the world’s largest oil reserves, but their exports of oil are tiny relative to the whole export market,” Governor Eli Remolona Jr. said Tuesday in his first public appearance this year.
The peso weakened after reports of a U.S. strike on Venezuela, sliding 28.9 centavos to 59.13 per dollar on Monday from 58.841 last Friday, though still stronger than its Dec. 9 record close of 59.22. “Time will tell what the more significant effect would be. For now, it’s a very modest event,” Remolona said.
By contrast, he said corruption tied to flood control projects has had a deeper impact. “The flood control scandal will have a long impact. The loss of investor confidence is a long drag. It will continue through the first half of 2026,” he said, while keeping the growth forecast at about 5.4% this year.
Remolona urged reforms including prosecution, restitution and changes in taxation, auditing and customs procedures.
He cautioned that reduced infrastructure investment could weigh on bank lending, particularly long‑term corporate loans.
