The past couple of months, we have seen the strengthening of the peso currency against the US dollars and this makes some sectors frown. From the 45-46 peso per dollar, it has now spiraled down to the 43 level.
Some of the sectors hit by this strengthening of the Philippine peso against the US dollar are the exporters, the OFWs and their families, call center agents and those people who earn online.
The strengthening of the peso may also bring in good news to some sectors and consumers especially in the utilities sectors that which our utility bills are also affected by the exchange rate. Same with the energy and petroleum sectors that are importing raw materials like crude oil and coal.
Unfortunately, with the Christmas season fast approaching, families of millions of OFWs, thousands of call center agents and workers in the export sectors like semi-conductor companies, have to reckon with the fact that a big chunk of their earnings if not their employment status are very much affected by this weakening of the US dollar.
A family for example that is receiving $1000 every month with the exchange rate of 46 = 1 receives P46,000 while at this present exchange rate of 43 = 1, they will only receive 43,000; that is 3,000 pesos less!
But other countries like China for example had made bold steps in order to keep their currency weak in order for their export sectors to continually post robust economic growth and lift the economy.
Sergio Ortiz-Luis Jr. of the Philippine Export Confederation Inc. thinks that the negatives effects of the strengthening of the peso far outweighs all other benefits as for him, “a strong peso equal a stagnant economy.” This may also send some exporters to close shop as they can only shoulder a threshold of currency exchange rate of 46-47.
And bloggers who make money online certainly know the negative side effects of this whole thing.
Do you think that the government should already interfere and weaken the peso for the benefit of the export sector, the OFWs and people that earns in dollars?