The basic concept states that a stronger peso means a stronger economy. If it is so, why are so many Filipinos not happy about it? Is it because these Filipinos are corrupt or being “talangkas” (crabs) pulling down the progress of the country?
Mind you that these certain group of Filipinos are those who are working abroad or online because they can not find a decent job locally that values them as skilled workers and not as commodities that one can pay for only P250 per day. It is insensitive to say that dollar earners are being selfish by wanting to keep the dollar up for themselves, while the rest of the population are suffering from high prices of imported goods.
Which leads to one point why a stronger peso is useless. The dollar rate has decreased from 48 to 40 in just a couple of years, but NO ONE has ever felt the prices of goods going down in consequence. Sure, it has made a Louis Vuitton bag which costs $1000, cost P40000 now instead of P48000 before but it only made OFWs poorer by at least P5,000 per month which could have been used to pay local helpers and provide local employment this way.
The quality of living has not improved, if not gone worse; and the gap between the rich and the poor is about to get wider, with the middle class OFWs about to go below the median. Hey, if a stronger peso means lower prices for goods, by all means make it even stronger so everyone can benefit from it!
A strong peso also means expensive labor costs when hiring Filipinos for foreign employers. It also means higher rates of manufacturing, which has already manifested through car manufacturers pulling out of the Philippines and transferring operations to countries with cheaper rates, or at least exchange rates.
If you work in a call center, you’re pretty much affected. Remember that most of the accounts in BPOs are based outside the country. If they can no longer afford the BPO’s rates because of the current forex, it will either result to massive lay-offs to afford the same salary rates, or these accounts pulling out altogether.
I think the government should somehow control the dollar rate at least for the OFWs who happen to occupy a huge sector of consumers, or at least control it to cushion its effects on the parties involved.
If the dollar earners stopped shopping, how is that good for the economy?
[I was going to place a photo of an empty mall here, but I guess malls in the Philippines are NEVER empty]