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Peso-dollar exchange could reach P53

The Philippine peso may continue to weaken up to P54 by 2018, but it should not be a cause of worry for overseas of Filipino workers (OFWs) and their families.

BPI Securities analyst Riche Lim said the peso-dollar exchange could weaken to P52.50 by the end of the year and to P53 to P54 by 2018.

Lim said, however, continued economic growth is expected to balance the weakness of peso.  

“The weakness of the peso is very structural in nature and it is caused by the process of importation of equipment for economic growth,” ABS-CBN News quoted Lim as saying.

At present, the peso value is at P51.40, its lowest in 11 years.

NEDA Director-General Ernesto Pernia earlier said that the weakening peso could boost the buying power of OFWs and their families.

“It is going to make our exports more competitive, our OFWs remittances will be a boost to consumption spending which is also an economic driver, economic growth stimulus. It’s also [good] for BPOs],” Pernia said.

OFWs sent home $29.9 billion (Dh109.8 billion) in 2016, making the Philippines the third top remittance-receiving country.

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