A Stronger Peso?
Reuters reported that the peso hit 41.62 per dollar, gaining just 0.2 percent from Friday, but taking its rise in the past month to 3.7 percent and its gains this year to almost 18 percent. I’ve exchanged my dollar yesterday at SM Mall of Asia for PHP41.40 per dollar.
It is normal that the Philippines have low demand of dollar during Christmas season. We have an estimated of 8 million Overseas Filipino Workers (OFW) and other Filipinos abroad who send dollars to their families here for the Christmas season.
Did I mention that Filipinos have the longest celebration of Christmas? Yup, you read it right. We started preparing for the upcoming holiday as early as you can imagine. 90% of Filipinos are Roman Catholics that’s why, plus the culture and traditions we have.
Stonger Peso? Strong just because we have reach the lowest exchange rate? For the record, OFW are the ones who’s sending the money here. They’re working hard for their family and our country. Its not easy raising the family if you’re physically absent on their side. Lower currency exchange rate means lower remittance.
As far as I know, a stronger peso means a “better economy”. Unemployment rate is high and you can smell poverty around.
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Exactly the reason why I am skeptical about the strengthening peso against the dollar. It’s almost the same trend every year. Towards the end of the quarter it appreciates then will begin tapering off toward the end of February the following year. Obviously, people monetarily stop spending and dollars remittances go back to the regular inflow.
A stronger peso? Nah. It is superficial. My dad views it otherwise.