The suffering heroes
The OFW sector continues to be the economic savior of the country. Last year remittance from Overseas Filipinos Worldwide reached a total of $17.348 billion which is 5.4 % above remitted in 2008.
Many Filipinos believed that with the new administration’s fight to end corruption and its people’s expectation of good governance, there will be an economic growth in the Year 2011, but the very people who help uplift economic turndown in our country are the ones being hurt.
Last Saturday, Mario, my roommate was very upset of the P 44.74 exchange rate versus a dollar. He needs to send P25,000.00 monthly budget remittance to his family back home and with the said exchange rate he needs to look for an additional SR 100 to maintain his monthly remittance. Like Mario, me too could fell the high cost of living in Saudi Arabia compare in the 90s. That is why our remittances will vary from time to time and whether we like it or not we have to remit regardless of what level the peso is.
However, economic expert said that this year’s fourth quarter growth will depend on the OFWs remittances coming year end and Christmas season.
But June issue of The Market Call of the First Metro Investment Corporation (FMIC) and University of Asia and the Pacific (UA&P) Capital Markets Research, expectations that the economy will post an 8% growth could be vulnerable due to the country’s budget deficit and strong peso.
In economic point of view, strong peso could diminish the purchasing power of OFWs and according to FMIC, strong currency also discourages domestic manufacturing and pushes down tax collections. This negative forecast should be given utmost attention by our new administration in order to come up with their expectations.
We believe that a strong peso will help improve our country’s economic condition but it must not be at the expense of us Overseas Filipinos and our families.
Since August 1 to 8, 2010, there is a continuing dollar decline on our remittances as shown below. And it can’t be denied that with the trust and accompanying support of the Filipino people in the new government under the leadership of President Benigno Aquino III, there will be a crucial impact of a strong peso in the following months. We already suffer enough being away from home, we can’t afford additional burdens.
|Sunday 8 August 2010||1 USD =||44.7444 PHP||USD PHP rate for 08/08/2010|
|Saturday 7 August 2010||1 USD =||44.7474 PHP||USD PHP rate for 07/08/2010|
|Friday 6 August 2010||1 USD =||44.9395 PHP||USD PHP rate for 06/08/2010|
|Thursday 5 August 2010||1 USD =||44.9765 PHP||USD PHP rate for 05/08/2010|
|Wednesday 4 August 2010||1 USD =||45.1762 PHP||USD PHP rate for 04/08/2010|
|Tuesday 3 August 2010||1 USD =||45.0788 PHP||USD PHP rate for 03/08/2010|
|Monday 2 August 2010||1 USD =||45.2656 PHP||USD PHP rate for 02/08/2010|
|Sunday 1 August 2010||1 USD =||45.604 PHP||USD PHP rate for 01/08/2010|
We therefore request the new government, especially to the economic team of the new administration to look into ways to mitigate the negative impact of the continuing dollar decline on our remittances, and alternatives may be implemented such as; a) Peg the Peso b) Creation of an OFW Stabilization Fund c) Creation of an OFW Bank that will cater OFW financial needs d) Special exchange rate for OFW remittances.
By: Bong Amora