- Business and Employment
What Would It Mean To Have A Strong Peso Against Dollars
The exchange rate between Peso and Dollar is now undergoing a drastic change. Much of my earnings are currently coming from my online job as a writer. I recently withdrawn my money from Paypal and noticed the exchange rate is getting smaller. By the time I started working in the internet, the exchange rate was around $47 and now it is only $40. Obviously, this is a bad news for me and other people who earn dollars as the primary currency used in their jobs.
In order for a person to use his or her money in a foreign country, he or she needs to convert the money to the currency used in that particular country. Since each country has different economic strength and stability, one currency might be stronger than the other. This is the main reason that a single dollar here in the Philippines will mean more than 40 times larger in value. Because of these, millions of Filipinos leave their homeland and families to search for a greener pasture.
What Weakens the Dollar?
There are many factors that contribute to the weakening of the dollar. I am not an expert when it comes to national finances or anything of that matter. So what I can notice are those that are really obvious.
I believe dollar started to weaken last 2008 when the US housing industry went down. House buyers are not able to pay their monthly mortgages and are forced to move to a cheaper house. Since houses were already built and money has already been spent, the investment cannot anymore be returned. This has led to depreciation of real estate properties. In addition to this, overspending of the American people contributed to the rapid downward of Dollar. As a result, the US is now the country with the LARGEST DEBT!
In spite of government efforts, dark days are looming ahead for the US. English-speaking nations are now in decline while the East is showing robust economic growth which is evident in China and other Asian countries. It is now a reality that there is no solution for the US dilemma unless God will intervene. They can only slow down the economic downturn but not stop it. In fact, most experts are predicting a sooner downfall of the US but thankfully, it is still not happening and I believe there is a divine intervention behind this.
So what should Filipinos Expect from a Stronger Peso
Back to our original question, what would a strong Peso against the Dollar mean for the average Filipinos? Ideally, stronger peso would mean lower prices for basic commodities. Since we are more of an importing nation, the products we buy from other countries will become cheaper. So we expect for a cheaper food or oil price, right? Well, the answer to that question might be a little obscure. Many Filipinos will agree with me to say that I do not feel any decrease in the prices. In fact, business establishments are so excited to increase their prices during inflation while they are so HESITANT in decreasing their prices when the situation calls for it. Talk about greediness!
A stronger Peso currency should mean good news for many of us but instead it becomes a source of problem for many people. Maybe the most affected sectors of the society are the people who greatly rely to foreign remittances. Little most people do know the Philippine economy is strengthened by the OFWs. Yes, they are the “makabagong bayani” (modern heroes) of the Philippines. It is really hard to imagine if these people cannot send enough money to their families back home. They will be forced to work harder or go home where they face unemployment.
Those corrupt officials who have dollar accounts will surely think twice now depositing their money outside the country. And how about the people who relies on exporting their products? Stronger peso will mean that they will have lesser income to provide wages to their employees. Think about the thousands of people who work in call centers. These BPO companies will pack-up and look for a cheaper workforce. Poor call-center agents…
In the midst of this scenario, stronger peso may still be considered as a pleasant problem. But to see that become evident may still be very unrealistic in our society.
Looking for the Solution
There is no doubt that the world is facing economic crisis. Wherever you turn your head, there seems to be no solution. I know this might be a little too religious to other people but the truth is the solution is embedded right in the pages of our Bible!
The Bible talks about the Jubilee year which takes place every 50 years. This is also known as the year of release and the “acceptable year of the Lord”. During this year, ALL DEBTS are being cancelled and the whole economic system will be refreshed and reset. People are brought back to their native lands. Slaves are being freed and people are able to be reunited with their loved ones. Think about this solution if being practiced today! All countries will surely enjoy being debt-free and restart anew! OFWs will no longer have to work abroad and they can be with their families to guide their growing children. This world will SURELY be a BETTER way to live in!
The main reason that the world is facing financial crises every 50 years is that the Jubilee law is being violated. While this might be an impossible dream for every country to practice, there will come a time when God will establish his Kingdom here on earth and people will practice his perfect law and way of life which includes the Jubilee! Everyone will enjoy the way of giving rather than the way of get.
In a personal level, stronger peso will surely hurt me financially. I do not want to be a spoiler but let us face it; our country is still not as strong as other countries. Our economic vitality is not brought upon from the internal but external. We have a stronger peso because the dollar weakens. Our government needs to slowly adapt to a stronger peso and not abruptly. BSP needs to control the stability of the Peso currency while taking into consideration the welfare of the general public and not just for the good of select few.