Peso seen within target range this year

MANILA -- The peso’s depreciation against the dollar is no cause for alarm, as its average rate is expected to remain within target range for the year of up to 52 to 53 to the dollar, according to a ranking National Economic and Development Authority (Neda) official.

“We are looking at the year-to-date (average rate of) 52 something. DBCC’s (Development Budget Coordination Committee) target range is up to 52 to 53. So we think for the year, it will just be around that range. I don’t think this will be breached,” said Neda Undersecretary Rosemarie Edillon in an interview last week.

The peso closed at 53.43 to the US dollar on Monday from previous close of 53.34.

Analysts of First Metro Investment Corporation (FMIC) and the University of Asia & the Pacific (UA&P) have noted that a 10-percent depreciation adds only around 0.5 percent to inflation.

The resulting additional inflation would only be 0.3 percent if the foreign exchange rate averages 6 percent higher, they said.

Edillon said the government is undertaking measures to curb inflation.

“If the cheap rice already comes in, that should bring down inflation. And you have more vigilant monitoring of the fresh produce (because) before, only monitored were the manufactured goods,” she added.

PASAY - Trade and Industry Secretary Ramon Lopez wants small business owners to shift to digital in order to reach a global audience.

Secretary Lopez gave this advice to Micro, Small, and Medium Enterprises (MSMEs) during the “Empowering Philippine SMEs with Digital Tools and Mentorship Opportunities” workshop last June 27 at the Philippine Trade Training Center (PTTC).

The workshop was organized by the Department of Trade and Industry (DTI) and the US-ASEAN Business Council in celebration of the International Day for MSMEs. The whole-day event featured trainings from Cisco, FedEx, HP, and Procter & Gamble.

“We need to create a nation of smarter, tech-savvy entrepreneurs,” said Secretary Lopez to address the disparity between the number of MSMEs and their contribution to the economy.

MSMEs account for 99.6 percent of the total number of businesses in the country, while also employing 62.8 percent of the total workforce. However, they only account for 36.5 percent of GDP.

“MSMEs must maximize the use of digital technology as it is a great equalizer, in terms of having more access to product and business model ideas; designs; real time market information and trends; entrepreneurship principles and teachings; microfinancing thru fintech (financial technology); innovative products and processes; financial literacy; and market access. Digital technology is a must to every entrepreneur”, Lopez added.

In line with this, the trade chief shared initiatives to help business owners in this digital transition: