Philippine peso reaches P17.02 per dirham on September 13, 2026 as weak currency boosts UAE remittances
The Philippine peso weakened further against the UAE dirham on Sunday (September 13), with UAE-based LM Exchange reporting a rate of P17.02 to Dh1 at 2:10pm.
The peso had already crossed the P17-per-dirham level earlier this month. The dirham reached P17.02 on September 7, while market data also showed the AED/PHP pair trading around the P17 level during the first half of September.
For Overseas Filipino Workers (OFWs) who earn in dirhams and regularly send money home, the weaker peso means their UAE earnings translate into more pesos.
The latest rate means that a remittance of Dh1,000 would translate to around P17,020 compared with P16,000 when the exchange rate is P16.
That can provide additional peso value for families receiving remittances, particularly for expenses such as food, school fees, healthcare and household bills. However, the benefit is largely felt by recipients in the Philippines. OFWs who earn and spend their salaries in the UAE do not see their local purchasing power increase simply because the peso has weakened.
There is also a downside for families in the Philippines. A weaker peso makes imported goods and products more expensive, potentially adding to inflationary pressure.
The Philippines is particularly exposed to higher global energy costs because it imports much of its fuel requirements. When oil prices rise, Philippine importers need more US dollars to pay for energy, increasing demand for the US currency and putting additional pressure on the peso.
Global oil prices have remained elevated in September amid geopolitical tensions, with Brent crude rising above $100 a barrel earlier this month.
Why is the peso weakening?
The peso’s recent weakness has come amid a combination of external and domestic pressures, including a stronger US dollar and higher oil prices.
The Philippine currency had already weakened sharply against the US dollar before moving beyond the 62-peso level in September. The pressure on the peso is significant because the Philippines relies heavily on imports of fuel and other essential goods.
A weaker peso can therefore create a mixed picture for Filipino families. For OFWs, the immediate effect can be positive because every dirham sent home converts into more pesos. But if the weaker currency contributes to higher prices for imported fuel, food and other goods, part of that additional peso value can be absorbed by rising household costs.
Who benefits and who does not?
OFWs earning in dirhams: They can get more pesos when converting or sending their UAE income to the Philippines.
Families receiving remittances: They receive a larger peso amount for the same number of dirhams, potentially providing short-term relief for household expenses.
Filipinos earning in pesos: Their income does not automatically increase, while imported goods and services may become more expensive.
UAE-based Filipinos: Their salaries remain denominated in dirhams, so the peso’s decline does not make everyday purchases in Dubai or Abu Dhabi cheaper.
Freelancers and workers paid in US dollars or dirhams: Those earning foreign currency and converting it into pesos can also receive more pesos for the same foreign-currency income.
The exchange-rate movement therefore creates a clear financial trade-off. Filipinos receiving foreign-currency income may gain more pesos, but families and businesses in the Philippines can face higher costs when the weaker currency makes imports more expensive.
For UAE-based Filipinos, the P17-plus exchange rate may therefore be good news for the amount their families receive, but it does not necessarily mean that their money is worth more in the Philippines once rising living costs are taken into account. CAM/ICA/Expat Media
For all the latest news from the UAE and the world, follow us on Facebook, Twitter and Instagram and subscribe to our YouTube page
+ There are no comments
Add yours