Legazpi City (Jan. 3, 2017) – The Philippine peso may continue to weaken against the US dollar this 2017.
According to prominent financial analyst Astro del Castillo, the exchange rate may reach as high as 52 pesos to the dollar.
Del Castillo said that several international events seem to be affecting the country’s present economic situation.
Most prominent of these occurrences is the assumption of US Pres. Donald Trump into office.
Fiscal experts, according to him, have always expected the strengthening of the US dollar every after election time the United States.
Another is the change in the political landscape in the European Union (EU), wherein other leaders are rumoured to be following Great Britain’s separation, although this remains to be seen.
Changes in the Middle East, the professor added, may also have a hand in the circumstances after oil prices were noted to be slowly increasing.
Despite all these, del Castillo is optimistic that the Philippine’s economic momentum will stay its course and that despite the devaluation, the country’s economy remains to be competitive.
He explained that low inflation still exists in the country, the revenues from business process outsourcing (BPOs) and overseas Filipino workers (OFWs) continue to pour in and there is still the strong presence of foreign direct investments (FDIs).
At this point, if the reform packages being proposed by the Duterte administration are approved, it will attract more foreign investors.
He added that the administration’s efforts in fixing the bureaucracy have already enticed the interest of several of these financiers.
In an overall view, del Castillo surmised that the Philippine economy still remains to be very promising in the year 2017. (J. Garalde)