Fixed foreign exchange rate for OFWs?
Today, 1 US dollar converts to Php 46.77.
With the Philippine economy gaining ground, the exchange rate for the US dollar keeps getting lower. And this isn’t exactly good news for one group of Filipinos – our overseas workers. Their hard-earned US$ doesn’t buy as much anymore.
A petition signed by over 15,000 overseas Filipino workers began circulating asking President Arroyo to establish a fixed foreign exchange rate that is above the 10-percent prevailing market value.
Vice-President Noli de Castro has endorsed that letter. But the Philippune Central Bank Governor Amando Tetangco Jr. turned down the proposal.
“That proposal is fraught with difficult questions and issues,” he said, explaning that such a program would require huge amounts of public funds because the difference between the market-determined foreign exchange rate and the fixed exchange rate would have to be subsidized.
“Who would bear the cost of that subsidy?” Tetangco asked, adding that if the current exchange rate of P45.7 to the dollar is offered to OFWs at, say P50:US$1, with the difference of P4 would have to be paid by someone.
Read the rest of the news at ABS-CBN.
What’s your opinion about this?
Tags: philippine, peso, exchange rate, currency, economy, OFWs overseas filipino workers
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