Soaring Philippine Peso

A news which is both half-filled and half-empty:

Half-filled story:
"Investors are cheering as Philippine stocks climb to a record high and the economy surges ahead at the fastest pace in 17 years... The economy has expanded 6.9 % in the first quarter, the strongest since 1990. exports have grown by 13 %, the philippine stock exchange has risen 21.5% so far this year..." thus says an article in Gulf News, International page.

Half-empty story:
all these economic jargon simply means one thing for an OFW Juan dela Cruz -- strong peso, weak dollar. and weak dollar, lower remittance.


the 'booming' economy and the rising value of peso have failed to uplift the commoners. being an OFW, it is common place for us to glance at the value of peso-to-dollar which is displayed prominently at the money exchange center which we pass by everyday on our way up to the office. and the stronger peso would mean shrugging off of shoulder at the calculated difference. e.g. for those who are earning $500 (at P50), late last year they get to remit P 25,000. But now, it devaluates to P22,750 (at P45.5).


"In a strange way, we are being punished for our own success" said a briefing paper by NEDA. our manpower has been our major 'export' for the past 10 years. there are about 8 million Filipinos (10% of the population) working overseas, wherein just last year, there was a record of $12.8 billion sent as remittance. and about 40 million people or almost half of the population, depend on remittances to pay for basic commodities.

the effect on dollar value is fast, but the effect on basic commodities and salaries in the philippines is hardly ever felt. prices still continue to soar, salaries do not change pushing more pinoys overseas, which, if the trend will continue, will mean devaluation of dollar.

when will it strike a balance? when will pinoys once again enjoy a complete family and not opt to work away from their loved ones? i don't know. economics used to be simple in college under Solita Monsod... can someone enlighten me here (in layman's term please?)...