The Philippine peso has hit an all-time low against the UAE dirham and US dollar as the Southeast Asian currency is weighed down by a mix of domestic and external pressures.
The peso fell to 17 against the UAE dirham, or 62.8 against the greenback, on Monday due to a widening trade deficit and a growing oil import bill caused by higher crude prices following the Middle East war.
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The falling peso has prompted Filipinos in the UAE and other countries abroad to remit more.
“The Philippine peso’s record weakness reflects the broader pressure facing several Asian currencies amid global market volatility. The peso’s record weakness means every dirham sent from the UAE currently converts into more pesos, giving overseas Filipinos greater value when supporting their families, paying for education or meeting household commitments,” said Ali Al Najjar, CEO of Al Ansari Exchange.
The Philippines has seen a steady increase in oil prices following the Middle East war, due to a surge in global crude prices. Oil prices rose by five pesos per litre in early September 2026 as global costs increased amid the ongoing military conflict in the Middle East.
Remittances increase
Nearly one million Overseas Filipino Workers (OFWs) work in the UAE, sending billions of dirhams home each year, making the UAE one of the top remittance corridors for the Philippines, alongside the US and Saudi Arabia.
“We are seeing customers pay closer attention to exchange-rate movements and choose the right time and channel to send money home. We have seen a slight increase in remittance activity across the Philippines corridor, as customers respond to the more favourable exchange rate,” Al Najjar said, adding that their priority is to provide competitive rates and fast, reliable and accessible remittance services, particularly during periods of heightened currency volatility.
Central Bank data showed that outward remittances remained significantly higher than inward flows, reflecting the UAE’s continued role as one of the region’s major remittance markets.
Money sent abroad through UAE exchange houses rose sharply in 2025, with outward remittances increasing 27.8 per cent year-on-year to Dh188.8 billion, according to the Central Bank of the UAE’s Financial Stability Report 2025.
Source: Khaleej Times