Fighting, corruption drag on peso
From CNN Jakarta Bureau Chief Maria Ressa
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President Arroyo with husband Jose who has been accused of corruption.
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MANILA, Philippines (CNN) -- Political infighting, instability within the military, and corruption charges against the husband of Philippine President Gloria Macapagal Arroyo have all helped drag the nation's currency, the peso, to a 31-month low.
In the case of the latter, it is, say some observers, an example of the pot calling the kettle black.
Philippine Senator Panifolo Lacson -- who himself is facing corruption charges -- accuses Arroyo's husband of salting away about $3.5 million in hidden bank accounts under bogus names.
"The issue here is all about corruption and the Filipino people deserve to know, especially corruption being committed at the highest level of government bureaucracy," Lacson says.
The president's husband, Jose Miguel Arroyo, labels the charges a "fairy tale" designed to divert attention from Lacson's own legal problems.
The senator's critics say the blast is the opening salvo in a presidential campaign that promises to be especially bitter -- a suggestion Lacson denies.
Even so, economists say, the controversy, political infighting, the fallout from a one-day military mutiny last month and the controversial suspension of the central bank governor have combined to erode investor confidence and push the peso to 31-month lows.
Lacson dismisses his role in the peso's volatility.
"The economy is bad. The political situation is bad. So to blame even the devaluation of the peso to these allegations, to these accusations against the first gentleman, I think, is absurd," he says.
No matter the cause, officials now are looking for ways to restore confidence and bolster the peso.
