Following the release of multiple economic reports in the US, gains in the local stock…
Local industries are favored while the peso depreciates.
According to the Federation of Philippine Industries (FPI), the weakened peso presents an opportunity for the regional industry.
According to FPI chairperson Jesus Lim Arranza, “the depreciating value of the peso could also boost local industries, as more consumers will now buy local items.”
According to Arranza, the growing cost of products brought on by inflation—which is also affected by the currency’s depreciation—will cause Filipinos to manage their money more carefully.
He continued that they would be obliged to purchase only what is essential and avoid expensive foreign things.
A weak peso, according to Arranza, might increase the competitiveness of products created in the Philippines, which would be advantageous for exporters.
According to him, a strong US currency also means greater profits for the exporters.
Arranza, meantime, issued a warning to economists from the public and commercial sectors not to alarm the populace with declarations about their presumptions and forecasts on the foreign exchange rate.
He said: “While I respect the financial acumen of the economic experts if indeed they are what they project to be, airing their speculative thoughts about the movement of the peso’s value against the US dollar will not stop the peso’s floundering value given the influence of external forces beyond our control.
The FPI leader claimed that “a gloom and doom prophesy” will make things worse, such as buying and storing more money, which can only be done by the wealthy.
“But who pays the price when inflation rises, or the peso falls? It’s the underprivileged and those who lack the resources to acquire and accumulate the all-powerful dollar. Ordinary folks can only pray that inflation will soon settle as they look up to the lofty sky, he continued.
Cebuano English Filipino
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