The appreciation of the Philippine peso against the US dollar, ushered by the smooth election that indicated a clear victory for senator Benigno Aquino III as the next Filipino president, has not been welcomed by most overseas Filipino workers (OFWs), who perceive it as a sign of even slower economic recovery for the country. “The rise in the value of the peso vis-à-vis the dollar and other currencies such as the British pound will not provide savings for many of us overseas workers and our families back home because of the continued spiraling cost of living in our country. It is not an indication that better time is coming,” said Filipino architect Rene. A Filipino banker based in Al-Khobar said that the euphoria of a new Philippine government that promises to end poverty has of course influenced the currency appreciation. “But the robust flow of dollar remittance from overseas workers is a big factor to the appreciation of the peso,” he said. Latest data from the Central Bank of the Philippines showed that remittances of overseas Filipino workers coursed though the banking system increased by 7.1 percent to $1.4 billion in February this year. Before the Philippine election, the peso-dollar rate was 45.80 = $1. Five days after the election, the peso appreciated to 44.01 to a dollar. The Central Bank of the Philippines said that it is expected that the Philippine peso will trade at 44 to a dollar by the end of the year. “The rise in the peso would be a welcome development if such direction will reverse the rising cost of living or stabilize prices of basic food commodities and fuel, but historically such peso appreciation did not ease the cost living of Filipinos. For us OFWs, we are at the disadvantage because the peso appreciation is unable to cushion the increasing cost of commodities, electricity, and education of our children,” said engineer Leandro.
