Although I’ve read about this news since November of last year, I was only able to confirm it after seeing this message on my PayPal account:

Yes it is now possible to send and receive money through PayPal in our local currency, the Philippine Peso, the advantage of this new service is that a fixed amount (in Philippine Peso) will be deducted on you account (in case you need to pay), unlike when using US Dollars as base currency which is dependent on the prevailing exchange rates.

This is good news for merchants that uses Philippine Pesos in their transactions, although PayPal’s foreign exchange rate is lower than the going rate, this feature relieves the usual problem of foreign exchange rate reconciliation.

Check out this new feature here (you must be logged in to your PayPal account).