On the NEDA Chief’s Reported Claim that the Peso’s Weakness is ‘Nothing to Worry About’
July 10, 2018
We should all worry that the NEDA Director General and the DBM Secretary (as earlier announced) are not worried about the weak peso.
For one, our offshore debt stands at US$73.1 billion. In July 2016, or exactly two years ago, the peso-US dollar rate was PhP47.30 per US$1. Now, it has shrunk to an all-time low at PhP53.40 per US$1.
We don’t need to be rocket scientists to realize that right off, we have to pay an extra PhP445.9 billion with the PhP6.1 difference.
Add to that the fact that the manufacturing sector imports a great portion of their raw materials.
Pray tell me if we shouldn’t be concerned.