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Thursday, September 23, 2004
Editorials: Peso’s precarious future
The Philippine peso is projected to further weaken against the United States dollar next year, and would probably hit the P57 to the dollar mark before it could stabilize. This is, of course, a preliminary projection of the Bangko Sentral ng Pilipinas (BSP).
The BSP’s earlier projection for 2005 was in the P54 to P56 range. But in the Senate finance committee hearing the previous week, it revised downward the estimate to P57 to the dollar. That reportedly shocked some of those who were at the Senate hearing.
What was shocking could be the implication of the forecast if it turns out correct. The “higher range would translate into an additional P1.6 billion in interest payments on the country’s external debt.” It could also raise the prices of imported goods and services, especially crude oil that now costs $40 per barrel.
Long battered, the Philippine peso has struggled on against all economic odds. To many economists, the peso is a hero of sorts, standing upright even if it totters at times as a symbol of a nation striving to attain social, political, and economic stability amidst tremendous challenges. .
Note that the strength of a country’s currency reflects the true essence of its material and political vitality. It not only proves the nation’s capability to be a sovereign country but also demonstrates its capacity to protect its right to peace and freedom.
Clearly, there is need to restore the peso back to its original vigor. This means attracting more investors, and the imperative need to resolve the financial dilemma the Arroyo government now faces.
‘Hungry’ Pinoy
Forced to cut down on their daily food intake as a result of an inflationary trend in the nation’s economy while their daily income remains the same, the average Filipino is reportedly growing slimmer, if not thinner.
This is according to the result of a survey on family income and expenditure that the government earlier initiated.
While top executives of government owned and controlled corporations (GOCCs) and government financial institutions (GFIs) reportedly stuffed themselves fat with millions of pesos in salaries and perks from their offices, the nation’s poorest 10 percent has to content themselves with a diet of toyo, bagoong, brown sugar, salt, coffee and powdered milk.
The survey reported the nation’s richest 10 percent of families earned P876.3 billion or 36.8 percent of the P2.38 trillion total family income. On the other hand, the poorest 10 percent had only P42.3 billion or 1.8 percent to share among themselves.
Truly, there is glaring disparity here, the reason for the rise of the so-called GNP or gutom na Pilipino.
(September 23, 2004 issue)
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