 |
| Peso denominations. (BSP photo) |
Analysis by The SUN
The
Philippine peso sank today to its lowest level ever, closing at P58 for each US
dollar, fueling fears of a further rise in the prices of consumer goods’.
Analysts said
they see no end to further deterioration, which is mainly due to aggressive US
anti-inflation policies which have strengthened the American currency against
most currencies in the world, sparking fears that the peso could hit P60 to the
dollar.
Another
reason for the peso losing ground is the higher demand for the US dollar because
the Philippines is in the peak of its yearly importation season for Christmas.
 |
| PINDUTIN PARA SA DETALYE |
So far, the
peso has lost 13 per cent of its value.
Of equal
concern is inflation, or the rise of consumer prices, and how it will be
influenced by the peso’s value, considering that a number of products the country
used to export – such as sugar – will now be imported.
Last August,
the inflation rate stood at 6.3 per cent, almost a third higher than the 4.4
per cent in August the previous year, according to the Philippine Statistics
Authority.
 |
| PINDUTIN PARA SA DETALYE |
The Hong Kong
dollar also weakened today to 7.85 to US$1, the trading ceiling set by the HK Monetary
Authority when it pegged it to the US currency -- down from its latest peak of
7.5 which was set Aug. 24.
This could
result in OFWs in Hong Kong hardly benefiting from the peso’s weakness, because
the currency they earn is also losing ground.
In the
meantime, they also have to meet their families’ increased demand for money
because their usual remittances are no longer enough.
 |
| Press for details |
The latest
figures from the Bangko Sentral ng Pilipinas (BSP) showed that cash remittances
sent through banks from around the world went up by 2.3% to $2.92 billion in
July, from $2.85 billion a year earlier.
Remittances
from Hong Kong reflected the peso’s performance.
 |
| BASAHIN ANG DETALYE |
In May when
the peso started deteriorating from 52.34 to 52.44, Hong Kong OFWs sent home USD50.2
million. By July, when the dollar was lowest at 56.82 on July 18, remittances hit
USD59.6 million.
BSP has a scheduled monetary-policy meeting
tomorrow.
 | ||
PADALA NA!
|
