Analyzing the Influence of Foreign Exchange Rates and Economic Factors on Balance of Payment Fluctuations in the Philippines (2013-2022)

The fluctuating foreign currency rate affects numerous economic problems, and the government is looking at it as one of the variables that cause the fluctuation of the Philippine balance of payments. Other factors include the Gross Domestic Product (GDP) growth rate, interest rates, and inflation. So, from 2013 to 2022, the researcher offered patterns and movements related to this element. The study analyzes its effects on the Philippine economy and its performance using the Preferred Reporting Item for Systematic Reviews and Meta-Analyses (PRISMA) technique. Exchange rate changes impact actual inflation rates and forecasts for future price changes. Its impact on international trade can also affect the nation's external sector. The result implied that a fluctuating currency causes inflation which lessens purchasing power, and there is a unidirectional connection from the balance of payment to the foreign exchange rate, inflation rate, interest rate, and GDP growth rate. Therefore, the government must encourage implementing interest rate management programs to improve the balance of payments and reduce inflation