Warning against a strong peso

I’ve been talking about how devastating a strong peso for exporters like us is. Last Sunday at Philippine Star, Sen. Roxas, an economist himself aired the same caution:

Roxas, chairman of the Senate committee on trade and commerce, warned that the situation – if not promptly addressed – would result in the displacement of thousands of workers in the export and production sectors.

“Walk the talk. Where’s the ‘social payback’ due our people?” he asked. “OFWs and exporters have been complaining for months about decreased incomes, and have been demanding action from their government to ease their plight,” Roxas said.

“The government could not afford to be oblivious not just to the immediate hardships of our eight million OFWs and 3.5 million exporters but also to the real threat of lost incomes and jobs in local industries due to this continuing trend,” he said.

Again, contrary to what the Arroyo administration claims of a growing economy based on the strong peso, it should be properly noted that the peso is strong only because the dollar is getting weaker and weaker by the second.