The Philippine Peso-US Dollar exchange rate continues to slide down to 42.54PHP per US dollar as of today, as reported by the foreign exchange sector. Yesterday it landed at 0.06 PHP higher than present. Little by little, the currency rate will eventually affect the entire Philippine economy.
Basically, with this development, one cannot simply conclude that the Philippine economy is gaining strength with the slow decline of US Dollar currency. Nor, can anyone say that the Peso has not improved its status in the world market exchange. Remember the Philippines, because of the scarcity of local fabrications and local innovations, has become quite dependent on imports from foreign countries especially goods from the US. And if it means the peso is gaining strength against the dollar, it means that the US economy is going down with their stocks lessened for export and instead preserved for their personal utility.
The logic then would be simply, the lesser the imports from the US, the lesser produce to be gained. Because when talking of import, we talk about our country’s dependence on foreign products such as processed fertilizers, textiles and other electronic hardware’s and software’s. Filipinos’ great attachment to the examples mentioned will be the main cause of the economic decline. Thus, what is left for the masses is to compete with each other due to the scarcity of jobs and earnings in the local market. Furthermore, if the trend in the stock market would continue to slide this means that OFWs’ earnings would become of lesser influence to the country’s surplus economic growth.
On the much brighter side, the latest accounts on the stock market exchange and the peso-dollar exchange has given rise to local manufacturing companies. Quite a number of local manufacturers are actually quite on the verge of investing at higher rates due to the levelling of the Philippine peso against the dollar. This would also mean that if ever the foreign exchange would continue to go down, bond investments would start booming any time now. In fact, many have started shifting to bonds this year when the US dollar started to lose some of its value.
For all these, local, pro-government critics say that P-Noy is doing well in his first year performance since the local market is starting to stand its ground, well that is if viewed on one side of the coin. However, remembering fellow OFWs working abroad and the many return Filipinos or Balik Bayans due to the deployment in foreign countries because of the world crisis, the only thing which can be concluded is that the Philippines is neither gaining much nor declining rapidly from these. Because obviously a lot of Filipinos are still unemployed while those on the higher social strata are now gaining big time.
There is in fact a great inequality among the local citizens. And unless a better cause can be done to help solve the Philippine current state, then more possibly it will have to further join the decline of the world economy.