The peso plunged even deeper to P59 per dollar, an all time high, resulting in pluses and minuses to the economy.
Foreign currency rates and international economics have entered a new age. The US dollar is extremely strong versus international currencies, particularly the Philippine peso reaching P59 per dollar.
US dollars have high demands due to the reopening of countries with the pandemic waning but still around. The US dollar is strong against the peso, but that does not indicate a weak Philippine economy. It just happens that dollars have been going strong versus other currencies.
On September 27, the total forex volume traded was high, which means that the demand for dollars is high despite it costing more pesos.
That high demand can be interpreted positively for our country's development because our local economy requires those funds for industries, imports, overseas travel, tourism re-opening, and filling merchandise stocks for the peak sales season, which runs from October to December.
Additionally, it is also positive for exporters, OFWs, the BPO sector, and tourism. The OFWs really gained from this as every dollar that can be exchanged for a peso is around P59, which is a high value.
But the downside is all imports become very expensive which includes fuel, rice, flour, electronics, and raw materials used for electronics. This in turn leads to higher prices of items needed daily by the Filipinos.
The risk of continued high inflation persists, spurred by fuel prices, with crude oil still far from returning to $70-$80 per barrel.
Rep. Edwin L. Gardiola suggested that consumers should buy locally, help the micro, small & medium enterprises (MSMEs), and support exporters with high local and labor content.
This can help in addressing the high price issues as local purchases require less transportation and outsourcing.
Additionally, consumers must be mindful when using credit cards because interest rates are rising. Buy using cash or e-cash to lessen those rates.
The government should also help entrepreneurs in the provinces as a way of promoting local businesses and increasing job positions, especially the approaching Christmas season.
Large feasts are to be expected at this event so supporting and sympathizing with farmers, fishers, and entrepreneurs in the provinces are needed, especially since the economic recovery should be felt around that time.
Gardiola added that the Bureau of Customs (BoC) should be quick in releasing shipment containers on harbors to lessen the negative effects of high forex rates.
Red tape should be minimized, if not eradicated, to ensure speedy release of imports.
Consumers should support local products to help the economy recover, and the government should also address the high prices issues that are still hurting a lot of Filipinos in securing their daily needs.
Tags: #Dollar, #Peso, #Economy, #ForexRates