Rejoice Kabayan this year, 2007, marks a wonderful year for the Philippine economy, the peso increase to it's highest value for this century. From 50+ per dollar at the start of 2001, now it's only 46+.Wow! Philippine government must have done well amidst the low outcome of other Asian countries.
Our Kabayan must now be benefiting from this economic progress! But is this the reality.
I'm an OFW, like many Filipino, who want a better life for our family. It seems; when peso increase our earning decrease. Why? Here's an example: 2006 when i leave Philippines the peso vs dollar rate is at 50+/1 peso and the gasoline price is almost 40 per liter. The exchange rate of SAR (saudi currency) to peso is 14.01/1 peso. (RP gov said economy is down)
After almost a year (11 months actually) peso increased it's value: dollar is now 46.60/1 peso (as of last nite) it also affect other currency exchange. Now SAR-1.00 is Php-12.20 that's 13% value decrease of an OFW earnings (now RP gov said the economy is good). Yet our family complains about the expensive commodities back home.
Why is that so? I am not a financial analyst just an ordinary OFW, having an ordinary job with an average earnings. Is it really the peso that's increasing it's value or is it the dollar declining.
Here's a headline (May 21, 2007) from Arab News a leading newspaper in KSA: Kuwait Abandons Dinar Peg to US Dollar. It says:
"Kuwait has abandoned pegging its currency to the US dollar and returned to linking it to a basket of currencies"..... "The fall of the exchange rate of the US dollar has “contributed to local inflation,”....."The falling US dollar has had “negative effects” on the Kuwaiti economy for the last two years"....."the move was “necessary in national interest,” (read the full story here)
Yes, the reason is the dollar's decline that's dragging down the Philippine economy and making OFW earnings more painful.
A rich oil base country like Kuwait complaining about the inflation that the dollar decline bring. This is alarming! Don't you think so? Hope that our government would also make a statement like this (and i quote) "the move was “necessary in national interest". When will be the day? I know this time would come! (cross your fingers) I still believe in our officials!
