Saturday, April 05, 2008 Solons tackle proposal addressing impact of stronger peso on OFWs
LEGISLATORS are just as concerned with the strengthening of the peso as those in the economic sector.
Rep. Ramon “Red” Durano VI (Cebu, 5th district), chairman of the House Committee on Economic Affairs, said the committee is looking into possible policies that will “protect the interest of OFW (overseas Filipino workers) whose high dollar remittances have been regarded as a huge contributory factor to the growth of the economy.”
Durano cited House Bill 383, authored by Rep. Teodoro Casiño, which tackles the impact of the strengthening of the peso and develop measures to maximize its positive effects while alleviating any negative outcome.
“We will be inviting other government agencies and the Bangko Sentral ng Pilipinas,” he said in an interview with reporters recently.
While the strong peso is an indication of the country’s good economic landscape, Durano raised the need to address the concerns of overseas Filipinos and exporters, who have been clamoring for government intervention in the currency issue.
Durano said that, on average, a family of an overseas Filipino stands to lose at least P2,400 a month due to the appreciation of the peso.
The government has started implementing programs to help exporters, such as the hedging facilities through the Development Bank of the Philippines and the P280-million Export Development Fund.
“But we need more effective programs,” especially with some economists projecting the peso to hit the P38-level by year-end, Durano said.
He said the House Committee on Economic Affairs is expected to file two resolutions: one will urge the National Government to maximize the effects of the strong peso while the other will caution against the negative effects of the currency’s rise on some industries, like the business process outsourcing.
“Once we have identified what actions to take, we will be recommending these to the National Government,” Durano said.
The 35-member committee has already approved the resolutions, which are scheduled for second reading, he added. (MMM)
