In the past months, the value of the Philippine peso has been going down steadily. In an interview with ABS-CBN News, BPI Securities analyst Riche Lim pointed out that the peso-dollar exchange rate could reach P52.50 by the end of 2017 and P53 to P54 by next year.
While this may seem alarming at first, the steady decline of the peso may be beneficial to OFWs who earn in dollars. The buying power of OFWs and their families will increase, and this can serve as a boost to our economy.
Exports are more competitive.
Having competitive exports also help push economic growth. So while the weakening peso may be a sign of economic decline, this may be balanced out by the rise of quality exports. It is a known fact that one of the biggest exports of this country is our OFWs.
OFWs’ remittances are good for the economy.
Aside from contributing a significant amount to the country’s GDP, remittances from OFWs push economic growth as well. With the value of the dollar rising, OFW families will benefit because aside from the capability to buy more consumer products and luxuries, they also now have the means to access better services like education and health care.
A dollar a day goes a long way.
At ofwlife.ph, we encourage OFWs to make the most of whatever situation they are in. In this case, instead of spending all that extra money, why not try to maximize the increased value of your earnings to save for the long term. If you have 365 dollars today, that’s already worth more than 18,000 pesos today. If you set that money aside, in one year, the value of that can go up to more than 19,000. You might not have 365$ to set aside now, but you probably can afford to save one dollar a day. Do it every day for one year, and by next year, you’ll have almost P20,000 without exerting much effort.
Dear OFWs, share with us how you plan to maximize the benefits of the weakening peso in the comments below.