Bias for local industries seen amid peso depreciation
MANILA – The Federation of Philippine Industries (FPI) sees an opportunity for local industries amid the weaker peso.
“The falling value of the peso could also help local industries, as more consumers will now buy local products,” said FPI chairperson Jesus Lim Arranza in a statement Thursday.
Arranza said the rising cost of goods due to inflation, which is also impacted by depreciating value of currency, will make Filipinos become more prudent with their finances.
“They will be forced to buy only what is necessary and will avoid imported goods that they can hardly afford,” he added.
Arranza said the exporters also stand to benefit from a weak peso as it could make Philippine-made products become more competitive.
With a strong US dollar, this also means higher revenue for the exporters, he said.
Meanwhile, Arranza cautioned economic experts both from the public and private sectors not to scare the public with state ments about their assumptions and projections on the foreign exchange rate.
“While I respect the financial minds of the economic experts, if indeed they are what they project to be, airing their speculative thoughts about the movement of the value of the peso against the US dollar will not stop the peso’s floundering value given the influence of external forces beyond our control,” he said.
The FPI chief said “a gloom and doom prediction” will aggravate the current situation, such as buying and hoarding more dollars that only the rich are able to do.
“But who suffers the most every time the peso drops or when inflation goes up? It’s the poor and those who do not have the money to buy and hoard the almighty dollar. Ordinary people can only look up to the high heavens and pray that inflation will soon stabilize,” he added.