Weak peso to also hit OFWs —experts

Weak peso to also hit OFWs —experts
June 15, 2018 http://www.gmanetwork.com/news/pinoyabroad/news/656987/weak-peso-to-also...

If there's a sector that welcomes the weakening of the peso against the dollar, it's the OFWs.

But, as financial analyst Astro del Castillo explained, families of OFWs may soon feel the negative effects of a weak peso as other Filipinos due to the higher price of oil and other goods.

"Dahil sa paghina [ng piso], posibleng tumaas pa rin ang presyo mo sa langis. Pag tumaas ang langis, dahil ito ang dugo ng ating ekonomiya, tataas naman most likely ang presyo ng mga bilihin," Castillo said in a report on Balitanghali by GMA News' Jam Sisante-Cayco.

Utility bills may also adjust for the worse as the Foreign Currency Differential Adjustment mechanism will allow companies to adjust their prices according to the dollar-peso exchange rate.

"Kunwari ang kanyang sa cost niya, interest nung bumili siya ng equipment, substation, nangutang sila sa ibang bansa, dolyar ang kanilang utang. Yung dolyar na yun, yung pagbayad nila ng interes, mas mataas ang babayaran nila," economist Prof. Vic Abola said.

Exporters, meanwhile, expect a positive effect of the peso's weakening on their business, but importers face higher prices for their textiles and other raw materials that will be offset by higher prices.

The peso hit its 12-year record low on Thursday at P53.27 from Wednesday's P53.23:$1, edging closer to the P53.55:$1 low recorded on June 29, 2006. —Rie Takumi/KBK, GMA News