PNoy: Dollar To Trade Below P40 In 2013
MANILA,
Philippines — President Benigno S. Aquino III has predicted that the peso will
sustain its appreciation versus the US dollars and may possibly breach the P40
level next year against the backdrop of improving economic condition of the
country.
In his
remarks at the 115th anniversary of the Office of the President in Malacañang
last Thursday, the President took pride the country is already having a
“fantastic” run on the economic front, mirrored by the continued strengthening
of the local currency.
“I
assure you that in 2016, we will all be able to look back and say that we
really had such a fantastic period. Actually it is already happening today,”
Aquino said, admitting that a stronger peso may even become a problem later on.
“We may
even face the problem of a very strong peso next year. Today, the peso ranges
from P41 to P44 but it may veer away from P41, P44 and even reach the P30s.
Then we will have a different problem," Aquino said.
"But
wait, the newspapers might report my prediction and anger our exporters
today," he added, apparently becoming aware of the implication of his
peso-dollar exchange rate forecast.
A
strong peso dents on the country’s export performance as it means that the
importers will have to shell out more dollars to pay for the local produce.
It,
also, hits the overseas Filipino workers to a certain extent as it meant lesser
amount of peso for their hard-earned greenback.
Yesterday,
the last trading day of the week, saw the peso closing at P42.95 from the
previous day’s P43.06, an 11-centavo appreciation against the US dollar.
Although on a weighted rate, the peso barely moved, settling at an average of
P43.05 from Thursday’s P43.04 to the greenback.
A
foreign currency trader said the expected higher inflow of OFW dollar
remittances pulled up the value of the peso against the US dollars. He
admitted, however, that improvements in the economic indicators in the United
States slightly weighed down the sustained peso appreciation.
Moving
forward, he echoed the sentiment of the President that the “bias remains for
peso strengthening,” adding that the peso could further appreciate and may
breach the P43 level.
The
President, who has denied he was "noynoying" – a stab at his alleged
do-nothing working style, insisted that the local economy was improving due to
his government's reform agenda.
An
indication of the robust economy, Aquino said, is huge number of people shopping
in the malls.
"I
go around the malls. I look at people who are in the malls. If I do go around
and see people in the mall, I look whether or not they have packages. If they
have packages, chances are they shop, which means they had money," he
said.
Another
proof was the length of fireworks display during the New Year revelry,
according to the President. Remembering he coughed more often during the New
Year welcome rites, Aquino said revelers started the fireworks as early as 6pm
ahead last December 31 that proved they have money. Some even have extra
fireworks three days after New Year's Day, he said.
Aquino
also highlighted other accomplishments of his administration, including the
distribution of cash subsidies to three million poor families.
He said
the government intends to build at least 66,000 classrooms by 2014 and achieve
rice self-sufficiency in 2013. He said the country may become an exporter
rather than importer of rice by then.
GENALYN
D. KABILING
mb.com.ph
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment