BPOs may close if peso-dollar hits 39-A A +A
Tuesday, January 8, 2013
AN economics expert fears that some Business Process outsourcing (BPOs) may close shop if the Philippine currency continues to appreciate.
In ANC's Business Nightly aired Monday, Victor Abola, Program Director of the Strategic Business Economics Program of the University of Asia and the Pacific said that if the peso-to-dollar exchange goes down to 39, BPOs may transfer to other countries.
Abola said that while the Philippine peso appreciated since 2010 by 10 percent, India's currency depreciated by more than 20 percent giving BPO companies a choice to transfer their operations where they have cost advantage.
Abola said that the Business Process Outsourcing companies have aired that they will close shop if the Philippine peso continues to appreciate.
However, the Business Process Outsourcing Association of the Philippines (BPAP) said that it can't comment on Abola's statement just yet.
As of Monday, the peso-dollar exchange is at P40.8560 and the Philippine Stock Exchange breached the 6,000 mark for the first time in history making a record high for the fourth straight session. (Sunnex with wire reports)