In the topic “Philippine tries to aid its currency” the writer tried to show the situation of peso in Philippines. In the first part of this topic we see that the value of peso has been declined due to some reason and in the second part the Central bank take some initiative to make it stable. The growing political instability in Philippine is creating problem in currency area of this country. A mutiny happened last month by the member of armed forces, on the other hand there is a fear of terrorist attack by the Islamic militants in Manila. These entire political situation forced peso to decline. To defend the peso from currency speculators, Philippine central Bank raised interest rates. This rising rate is not charged to commercial bank rather the banks are paid to keep money at central bank. Central bank raised interest rate to encourage banks to keep more money in the central bank rather than lending it out or using it to buy dollars. This move was intended to avert the potential inflationary effects of peso’s decline. Some analysts think that defending the peso with higher interest rate may be pointless because the political situation is uncertain. On the other hand, some analysts support this idea. They think in this situation currency speculators cannot take the advantage of declining peso. The falling peso might benefit Philippine exports but it is more expensive for the government to pay the debt in dollar. The sinking peso and political concerns is creating different type of problem. Philippine is also struggling to crack down on tax evasion and want to get relief from budget deficit. After all of this discussion we get one point and that is “it’s in the national interest to make sure the peso is kept stable.”