Thursday, November 15, 2007 Malig: Stronger peso hurts 5 million families By Jun A. Malig Cognition
ABOUT five million Filipino families had better living conditions when the peso-dollar exchange rate was still P50 to US$1.
This was revealed the other day by the Social Weather Station (SWS) which conducted a survey about the issue last September 2 to 5. It found out that 30 percent or about five million families say they were better off before, while only 13 percent or about two million Filipino families say they are better off now, with the peso-dollar exchange rate at P45 compared to when it was over P50.
By the way, the exchange rate as of press time yesterday was barely P43 to a dollar.
The survey results were not surprising. Just ask the folk in your neighborhood who have parents, siblings, offspring or relatives in the United States and you’ll be convinced about the credibility of the SWS survey. Ask those who have overseas Filipino workers kin in the Middle East, Hong Kong or Singapore and you’ll get not just confirmation but lamentation as well.
The good news is some 57 percent or about 10 million Filipino families, that probably have no kin in the US or working as OFWs elsewhere, say their well-being has not been affected by the stronger peso. However, the SWS survey also showed that “while majority of families say their well-being has not changed much, the Net effect of the stronger peso is negative in all areas and classes.”
In Luzon, for instance, the SWS said 33 percent of families say there were better off before, while only 11 percent say they are better off now. In Metro Manila, 26 percent say they have better living conditions before, while only 11 percent say they are better off now.
In the Visayas, 26 percent lived better with the P50 to US$1 exchange rate and only 13 percent are more contented now, while in Mindanao it is 29 percent against 12 percent.
“Among class ABC families, 34 percent say they were better before, while only 9 percent say they are better off now, or Net -25. Thirty-two percent of class E families say they were better off before, while 11 percent say they are better off now, or Net -21. Among class D families, 28 percent reported that they were better off before, while 14 percent say they are better off now, or Net -14,” the SWS report stated.
The survey shows that about 37 percent of OFW families say they were better off before, while only 18 percent say they are better off now that the peso is stronger (the latter probably receive remittances and money transfer in other currencies like pound, euro, yen, etc.)
The so-called “mga Bagong Bayani,” -- the OFWs -- are hurting. The US$100 they used to send to their families was equivalent to P5, 000. Now, it’s roughly P4, 200 or P4, 300. The prices of petroleum products and other goods and services continue to increase. The P700 to P800 they’re losing from every US$100 they send home is too significant. Can we blame them for complaining about the stronger peso?
