Commentary: Peso and the OFWs
by Renee F. De Guzman
San Fernando City, La Union (18 April) -- As the peso continues to gain and remains at the P47 territory, the small salaried overseas Filipino workers including the exporters are getting unhappy.
The rising peso has undeniably reduced the income in peso terms of the exporters and especially the OFWs has it lessened the purchasing power of their dependents back home.
A stronger peso is good for the country’s economy and therefore for everybody. It should be emphasized that the merits of a buoyed peso includes; the reduction of cost of oil imports, moderation of inflation, lower cost of local raw materials, stabilization of electricity rates and cheaper imported goods.
Moreover, a strong peso helps in trimming the country’s debt payments and budget deficit. According to the Department of finance the country can reduce payments by P4.2 billion for every P1 appreciation in the exchange rate.
Relatives of Filipino migrant workers and exporters seem to be on the receiving end of an appreciating peso. Their predicament however, is expected as temporary and will not linger because a stronger peso will eventually boost their purchasing power. (PIA La Union) [top]