Lower peso vs dollar good for PH exports, say
THE current high exchange rate value of the dollar against the peso poses a positive impact to the export industry of the Philippines, said a Mindanao Development Authority (Minda) official.
“The fluctuation of peso against dollar where we’ve seen peso depreciation is positive for our export sector at this time of the year where we’re able to expect more revenues from the export sector because of higher dollar value for many of our export commodities,” Minda deputy executive director assistant secretary Romeo Montenegro said during the weekly press conference at Habi at Kape last Wednesday, December 6.
In earlier reports, in Davao City alone the value of exports had increased by 14.17 percent as of the second quarter of the year to $570.64 million from only $499.82 million. Banana remained to be the top export commodity of the city followed
by coconut oil, pineapples, desiccated coconut, and banana chips.
These products are usually exported to Japan, China, Korea, the Netherlands, United Arab Emirates, and the United States.
“During this period of the year also, we have seen a bit of deceleration of our imports. When you have higher exports over imports, then you have higher dollar value as against peso, then definitely we expect greater revenue,” Montenegro added.
As of 11:30 a.m. yesterday, the peso exchange rate of dollar is at P50.72.
In line with the high exchange rate value of dollar over peso, he said the purchasing capacity and domestic consumption of the Overseas Filipino Workers (OFWs) will be expected as well as more remittances will come for the rest of December until early next year.
“December is remittance seasons. We expect more of our OFWs sending money home and that will definitely propel higher purchasing capacity for many of our Filipino and domestic consumption will again play an important part in terms of overall economic performance, way up to the early part of 2018,” he said.