RIYADH, 22 February 2004 — A bank executive yesterday said the continuing slide in the peso’s value is a bad development that also affects overseas Filipinos.
James G. Oliver, an assistant vice president at the Rizal Commercial Banking Corp. (RCBC) and country manager for Saudi Arabia, observed that many OFWs rejoice whenever the peso falls because their dollar remittances have bigger conversion rates.
“But their jubilation is only temporary. At the end of the day, they will realize that the cost of commodities in the Philippines will also become higher because of the weak purchasing power of the peso. That means, the peso slide is bad for the country,” he said.
Filipinos working in various parts of the world continue to prop up the Philippine economy by sending home the bulk of their earnings. Last year, OFWs sent home about $7 billion of their earnings through the banks. The figure does not include the remittances made through underground door-to-door services and those brought home personally by workers.
Oliver made the observation as the peso dropped yesterday to an all-time low of 56.35 to the dollar at the Philippine Dealing System (PDS).
Analysts have attributed the recent slide to uncertainties in the forthcoming presidential elections.
“Another probable reason is that many of our obligations (loans) have matured. For us to meet these obligations, dollar is needed,” said Oliver.
Members of the Philippine business community are worried that action movie star Fernando Poe Jr., a high school dropout and close friend of deposed leader Joseph Estrada, might win and not know how to manage the economy.
Business leaders also fear that violence would erupt if the Supreme Court rule against Poe, whose disqualification is being sought by his rivals on the alleged ground that he is not a natural-born Filipino.
President Gloria Macapagal Arroyo yesterday called Bangko Sentral ng Pilipinas (BSP) Governor Rafael Buenaventura and Finance Secretary Juanita Amatong to meet and discuss measures for arresting the speculative movements against the peso.
Earlier, she also challenged all political leaders and contenders in the coming elections to apply the highest level of statesmanship in the campaign and to always bear in mind the best interest of the Filipino people.
