For the next couple of months, we are expecting a Ph14.40 rate.
DUBAI: Remittance companies are keeping a close watch on global developments involving the US as the peso-dirham rate continues to break records, recently hitting a 12-year low at Php14.24 with a trajectory indicating a Ph14.40-mark.
“May mga tensions na nangyayari,” said Ed Punzalan, AVP of Banco de Oro in the UAE which has Direct Remit partnership with Emirates NBD. “I think it’s a knee-jerk reaction. Medyo volatile ang situation. The rate is going up and down, it’s not stabilizing,” he added.
Volatility appears to be the operative word.
Sudhesh Giriyan, COO of Xpress Money, a remittance company, noted that the Philippine Peso has been “witnessing volatility for the past few months.”
“As of now, the rate is Php14.18 against the dirham and the market sentiment suggests that this trend may continue with the peso weakening even further,” Giriyan said.
He said cash remittances to the Philippines in February rose by 4.5% when the exchange rate was Ph14.19 against the dirham and Ph52 to the dollar.
“For the next couple of months, we are expecting a Ph14.40 rate,” for her part said Michelle Sanchez, Philippine corridor head at UAE Exchange, citing current international developments.
Sanchez had early this year rightly predicted that the peso-dirham exchange rate could hit the Php14-mark.
Maynard Enrile, Cebuana Lhuillier marketing manager for international remittance said the situation is “too volatile.”
“Right now, may mga ongoing developments in the US. Wait and see kami. It’s hard to tell kung ano ang magiging trend. Wala pa ring indicator,” Enrile said.
The US has been facing a standoff with Russia following an April 13 bomb run on Syria with allies, France and Britain. US President Trump is also currently at loggerheads with China over tariff issues arising from intellectual property rights violations.
