Socioeconomic planning secretary Cayetano W. Paderanga, Jr. said that strategic foreign investments are key to averting future effects of the ongoing “currency war.”
However, Paderanga clarified that it is still too early to say that the Philippines is already affected by the exchange rates issues that currently hound economies worldwide.
Paderanga explained that several countries are complaining that big and emerging economies may have deliberately weakened their respective currencies, so as to benefit from the strong imports market of other countries.
“As an example, Philippine exporters usually profit from a strong US dollar. So they are worried that the US is controlling in weakening their dollar, so that imports from outside countries, like the Philippines, will shrink,” said Paderanga who is also director-general of the National Economic and Development Authority (NEDA).
According to Paderanga, the United States has already assured other countries that changes in foreign exchange would not be done drastically in a short period of time. “But the problem is the free market, over which the government has no control,” he said.
“That is why it is important for our government to strategically invest the dollars that are coming into the country. We would like to use them to invest in the needed infrastructure, like highways,” said Paderanga. Paderanga remains confident the the Bangko Sentral ng Pilipinas will come up with policies that would protect the interest of all sectors, including the exporters.
Last Tuesday, the Philippine peso broke into the 42:$1 level, the highest in two-and-a-half years. This was supported by continued growth of remittances from overseas Filipinos.
