READERS ON THE PESO
The Philippine Star
07/05/10

Our column Monday, June 28, “Strong peso: boon or bane?” talked lengthily in particular of the travails of our exporters and countrymen working abroad, and its impact on the economy. We received several comments from readers both of the newspaper’s website and print editions.

We will feature some of them today to further underscore the impact of the peso on many Filipinos who derive their income from exported products or labor.

One online reader, derequwc, says: “But how do you actually define the word ‘strong’? If a ‘strong peso’ means a strong buying power locally, then it's fine. But if local prices of commodities continue to soar beyond control, diminishing the value of the "strong peso" in process, where is its so-called strength?

Nothing to rejoice about

“If one goes to the market or the malls, the first thing he/she notices is despite the so-called ‘strong peso’, it actually has lower buying power! Thus, having a strong peso vis-à-vis the dollar and other foreign currencies simply is crap if its buying power locally continues to diminish; it's nothing but a paper tiger.

“When I went abroad as an OFW back in the 1980s, it was 3.74 riyals to the dollar; now more than 20 years later, it's 3.76 riyals to the dollar, notwithstanding the dollar's loss in strength. What does this tell us?

“Government financial intervention! Which the Chinese and the Japs, by the way, have been doing for a long time. Why can't the Philippine central bank do the same and intervene? That is, give the peso a FIXED rate against the dollar.

“In short, a strong peso against the dollar, but weak in buying power locally due to the uncontrolled rise in local prices in commodities is NOTHING to rejoice about!”

A letter sender from abroad, Pio Padilla, shares almost the same sentiment as our previous reader. He writes: “The P50 billion in OFW purchasing power that is lost if the peso-dollar exchange rate goes from P46 to P43 is not a big deal for us OFWs as long as the number of things that we can buy with our dollar remains the same.

“As it is, if before your $1 can buy 46 items (at P1 each), when the peso appreciates to $1:P43, you can only buy 43 items with your dollar. Couple that with the ever increasing prices of everything we buy, then the poor OFW gets a double whammy.

“There was a short time in the early 2000s when the dollar was worth P56.00. Our families were able to get P56,000 for every $1000 we remit. Compare that now to the P46,000 they receive today due to the strong peso: a WHOOOPING loss of P10,000.

“Sabi nga ng mga matatanda, "Saang kamay ng Diyos" natin mababawi ang nawalang P10,000?

“Our government says we have a strong economy but it is not reflected in a strong purchasing power of our peso, so something does not give. Its either we are being fooled by our economists or somebody is getting richer at our expense.”

Reap the benefits

Again, from the online edition, comes aden2010 with the following: “The strong peso should make the prices of commodities and services go down. This is the gauge that the sacrifices of Filipinos do not go to waste.

“As we seek to rise from the [status of a third] world nation, [let us be reminded that] these are just growing pains. We must not base our mindset that we are losing P2.00 on the exchange rate rather that we are gaining.

“Business must evolve with times and OFWs must continue to find ways to be competitive. Many people I know tell me how good it was for the Philippines back then when it was P7.00 to the dollar, yet lament when the dollar falls by 50centavos.

“We are a nation of wise men; let our country prosper this time. The government's part is to see to it that we reap the benefit of a stronger peso.

An overreaction

Citing almost the same thread of thinking, talleyrand says: “Most economists bewail the ill effects of a stronger peso for the OFWs. I think this an overreaction. Actually, this will increase remittances and ensure that the OFWs work longer hours to get paid more since it is difficult to curb the spending habits of the recipients much less monitor it by the remitter.

“I've read so many times from many OFWs claiming that they are the heroes of the stable economy. I think their heroism can be further escalated to sainthood by making them martyrs. Being a catholic country, I'm sure many of them would like to be a catholic saint.”

Philippine Collegiate Championship 2010

The 2010 Philippine Collegiate Championship games is the 8th edition of the annual search being conducted by the Philippine Collegiate Champions League (PCCL). Looking back over the past seven years, the teams belonging to UAAP, NCAA and CESAFI (Cebu) have been dominating the list of Sweet 16 Finalists.

Given the current competitive edge enjoyed by these major “mother leagues,” 10 slots in the Sweet 16 Finals are seeded to the top four teams of UAAP and NCAA and the top two teams of CESAFI. The automatic entry to the Sweet 16 Finals is, therefore, an incentive that teams in the UAAP, NCAA and CESAFI can aim for.

The 5th and 6th placers from UAAP and NCAA, together with the 3rd & 4th placers from CESAFI can still advance to the Sweet 16 Finals but will have to pass through the zonal qualifying games where they will compete with the regional champions and other “mother league” champions from Metro Manila.  

Keep track on how your favorite teams are performing by visiting www.CollegiateChampionsLeague.net, the official site of the Philippine Collegiate Champions League (PCCL).

Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, SalcedoVillage, 1227 MakatiCity. Or e-mail me at reydgamboa@yahoo.com. For a compilation of previous articles, visit www.BizlinksPhilippines.net