Peso Drops to 10-Month Low: What Does it Mean?
By Rico, 9:09 am Sat Jul 5 2008 - News - What Do You Think?
Yesterday reports came in that the Philippine Peso now dropped to 45 units to the US dollar. Our currency’s strength is very significant to us, because it determines a lot in the local technology world:
Website services, such as hosting and domain registration, are usually paid for in dollars. They are now more expensive.
Multinationals who maintain operations in the Philippines, like Texas Instruments, now have less overhead. Their dollars now pay for more in the local economy.
A lot of Filipinos who earn online, such as bloggers and entrepreneurs who ply their wares on the internet, now make more if they’re earning in dollars.
Filipinos who rely on remittances from relatives working abroad now get more for each payment. Maybe that desired cell phone is now within reach?
Exporters, especially those who sell electronics to other countries, can now price their products more competitively.
The oil we import is now more expensive, requiring more pesos to pay for each dollar. Once again, owning a vehicle is more costly.
It’s clear that the weakening Peso has a significant effect on the Philippines, its economy, and its local technological industry. In your opinion, how else does the stronger dollar affect our country?
(Feel free to compare the graph above, courtesy of Exchange-Rates.Org, with the graph we originally used when the Peso was gaining strength against the dollar)
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