The dirham-peso exchange rate on Tuesday, September 25, rose to Php14.76 as peso continues to weaken against the US dollar.
As per the BSP exchange bulletin, the dirham-peso rate has risen to Php14.76 as compared to September 24’s rate of Php14. 71.
It should be noted, however, that rates may vary in different currency exchange centers.
Earlier, UAE remittance companies told The Filipino Times that the peso-dirham exchange rate, which has continuously been moving up since last year, is headed to Php15, citing different factors.
One of which is the US’ move to hike interests resulting to a struggling peso.
According to BSP, peso closed at Php54.31 against the US dollar, weaker than the Php54.23 rate reported on September 24.
Furthermore, a London-based research firm sees Philippine peso to further slide to Php55 against US dollar within the year and to Php58 in 2019.
According to Capital Economics’ report titled “Peso plunges, Korea’s labor market woes continue” published on September 14, peso is seen to continue to weaken due to wider trade deficit, primarily brought by importation of iron and steel for the administration’s “Build, Build, Build” program.
“Looking ahead, the trade deficit is likely to widen further as imports of capital goods continue to flood in to support Duterte’s infrastructure drive,” Capital Economics said.
Budget secretary Benjamin Diokno however said that the results of the research wouldn’t be the trend as it is “unfounded”. “The fear that our peso to dollar [exchange rate will reach] P58 is totally unfounded. That’s unlikely,” Diokno said.
He then furthered he is optimistic about the continuous flow of remittances from OFWs which will help to stabilize the country’s economic situation: “Our current account deficit went down because we are building. We are expanding our economy so that our capacity also increases. We can still rely [on] our OFWs, [the remittances] actually increased. That is still reliable,”
Mr. Diokno aren’t you ashamed of yourself for saying that the research is unfounded and yet you rely on OFWs to strengthen the peso? Graduate ka pa naman sa UP parang hindi halata.