The Philippine peso continues to drop its value as a new all-time low intraday value was recorded on Thursday, September 22.
The highest exchange rate vs US dollar is at P58.5, slightly higher than the closing rate on Wednesday, which is at P58.
The rate closed at P58.4 according to the Foreign Exchange Summary of the Bankers Association of the Philippines, an all-time low value once again.
Read: Philippine peso trades at P58 per USD for the first time
A Filipino economist explained that the high exchange rate does not reflect a strong economy.
“Hindi ibig sabihin na dahil mataas ang exchange rate ay lumalakas ang ekonomiya ng Pilipinas o nakikinabang ang mga Filipino. Sa katunayan nga, hindi naman domestic kundi mas international ang sanhi ng pagbaba ng piso kontra dolyar ngayon, gaya ng sinabi ko sa unang bahagi. At hindi rin ibig sabihin kaagad na nakabubuti ito sa mga Filipino, dahil nga marami ang maapektuhang sektor. Importanteng isipin ang mga positibo at negatibong epekto, at kung ano ang mas nangingibabaw,” said Mr. Rainier Ric dela Cruz, a Former Economist of the Philippine Competition Commission and a current PhD Econ student of the University of Ottawa.
OFWs are making the most out of the high exchange rates by sending more money back home.
May, who works in Dubai said that she has sent three times more than normal her normal remittance this month.
“Gusto ko samantalahin na mataas yung palitan pero parang ‘di pala tumitigil sa pagtaas. Nakatatlong padala na ako ngayong buwan to make the most out of it,” said May.
A global remittance company has previously stated that they have seen an increase in remittances of OFWs to the Philippines early this month.
Read: OFWs in Middle East send home more money as PHP vs USD highest exchange rate hit P57 today
But instead of remittance, an Abu Dhabi-based Financial Adviser said that OFWs should instead invest in gold and property.
