Economist-solon Albay 2nd district Rep. Joey Salceda isn't panicking despite the continued weakening of the Philippine peso against the United States (US) dollar.
Salceda says a weak peso is advantageous for certain sectors, like overseas Filipino workers (OFWs).
Peso becoming weak again? Salceda says it 'isn't too bad'
Apr 20, 2023 09:36 AM
At a glance
(MANILA BULLETIN, Unsplash)
The Philippine peso is at its weakest against the United States (US) dollar in over four months, but don't sound the alarm.
At least, that's not something economist-congressman Joey Salceda would do.
Asked to comment on the skidding peso, which closed at P56.21 against the greenback Wednesday, April 19, Salceda said, "I wouldn’t read too much into this."
"A weak peso isn’t too bad, especially for OFWS (overseas Filipino workers), the BPO (business process outsourcing) sector, freelancers, and the recovering tourism sector, alongside manufacturing exporters. It makes Filipino labor and exports more competitive," the Albay solon said in a statement sent to House of Representatives reporters Thursday, April 20.
Wednesday saw the third straight day of depreciation against the dollar by the local currency.
The peso hasn't been this weak since Dec. 1, 2022, when it closed at P56:22 against the US dollar.
"I would attribute some of this to the less hawkish stance of the BSP (Bangko Sentral ng Pilipinas) on its interest hike regime," Salceda, chairman of the House Committee on Ways and Means, said.
"The main risk is the upside effect on inflation, especially on imported food and essential commodities such as oil," he noted.
"But we have always known that inflation is public enemy number one, and that supply side improvements are the highest priority," Salceda further said.