Strong Peso

The Peso has entered the P44 band yesterday closing at P44.85 to a US Dollar.

I dread the coming months for our OFW families, exporters and inbound tourism industry players.

The French banking giant BNP Paribas forecasts the Peso to end the year at P43. It moreover sees the Peso catching up with the surging Thai Baht and go as much as P37 by next year and P30 by the end of 2009.

Oh well, I believe this is too optimistic. Remember the other end when Lucio Tan predicted that the Peso will exchange at P100?

Advertisements

2 Responses to “Strong Peso”

  1. Guillermo Prat Says:

    Peter,
    Strong peso riding on a weak dollar produces nothing. Strong peso that does not come from productive effort will not help us. It is about time we move away from the IMF-WB prescribed float and peg the peso at, say, 45/1 and get to work. OFW’s and exporters are in a terrible mess. Maybe you should sponsor another resolution urging reforms of the BSP policy.
    Regards.
    Chito

  2. Peter Says:

    Yup Chito. No less than PLDT’s MVP has joined the chorus for reforms in the currency exchange policies of the BSP.

    The strong Peso does not reflect a strong economy; it is the US Dollar that is weak.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: