Wednesday, June 25, 2008 Editorials: As value of the peso slides
THE Philippine peso enjoying an unexpected “lark” over the United States dollar was too good to last.
The stronger peso raised havoc on Philippine exporters and Pinoy overseas workers’ remittances.
And our economy went through a strange “win-loss” circumstance.
Importers gloried in low dollar payments for imported commodities while exporters cried over their greatly reduced income from exports.
The unwitting and unaware masses took what blows were delivered to them as a result.
For a few months afterwards, what the people where aware of was the rising prices of commodities.
Jitters
The other day, it was reported that the peso “tumbled to an eight-month low of P44.60 to a dollar on a heightened jitters over a global environment weakened not just by the US credit crunch but the unabated oil and food price increases.”
It seems that the continuous rise in oil prices “amid a slowing global economy” has caused the “market to be apprehensive.”
Thus the peso strives to hold its own under current economic conditions.
The recent typhoon caused the loss of lives and properties worth hundreds of millions of pesos throughout the nation, and would surely add, to use a cliché, insult to injury to the lives of many of our people.
The aftermath of typhoon Frank would further weaken the peso even if overseas Filipino workers remittances would appreciate, especially if one considers the massive destruction of real properties and agricultural products.
Prayers
There is hope, however, in the report the other day that heads of the Organization of Petroleum Exporting Countries held a summit meeting to preempt further rise in the prices of oil per barrel that would place small developing nations at a disadvantage.
Saudi Arabia was said to have volunteered to increase its production by two million barrels a day.
If the price of oil would go down a bit---although Saudi Arabia had hoped that with its decision to increase production other members would follow but none did—the Philippines would be able to make do with its own resources.
Then the value of the peso might stabilize and the inflation rate slow down.
It is a situation we should all devoutly hope and pray for as assurance for our national survival.
