As Filipino goods and services become cheaper and more attractive in the eyes of foreigners, more foreign tourists are attracted to visit the country since they “would find their money going a long way here.”Īside from those in tourism services, those in the business processing outsourcing (BPO) industries and information technology and business process management (IT-BPM) sector could also get a boost from peso depreciation since they earn dollar revenue in exchange for their services. The tourism industry is also considered a direct winner in this scenario. “One thing people often forget is that even producers who are not necessarily exporting but are selling to the domestic market actually also benefit because the imported competing goods become more expensive-since prices of competing imports will also rise because of the higher exchange rate,” Habito told. However, even non-exporting producers can win as the peso depreciates since the falling peso has made imported, competing products costlier. Producers of agricultural products will benefit, especially if their imported component is not that big,” he said. “Many farmers will benefit in terms of the increased peso value of their exported products. These include workers in export industries that involve electronics-which Habito said is the country’s number one export-and agriculture-where a huge chunk of the country’s exports come from. That is why those who depend on remittances from abroad-such as those from Overseas Filipino Workers (OFWs) who earn money in foreign currencies- benefit when the peso depreciates since they would get more pesos for every dollar sent to them.Īmong the gainers are also exporters who likewise receive more pesos for their foreign currency earnings. The peso depreciation means more pesos exchanged for each dollar earned. There are winners-or gainers-and losers when it comes to the depreciation of the local currency, according to Habito.
That’s why I’d rather use neutral terms like appreciating or depreciating,” Habito said. “There are winners whichever way the peso goes, and that’s what we have to consider before we use terms like weak, worst, or strong. When the peso appreciates, Filipino goods and services get more expensive while foreign or imported goods become cheaper for Filipinos. When the peso depreciates, domestic goods and services become cheaper for foreigners.
When people say ’ is the worst performing currency in the ASEAN,’ it looks as if we are in a dire position,” he added. “What I like about those terms is that there is no connotation that is negative or positive.
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