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Manny Piñol: Higher dollar value benefits producers who use local raw materials - by Noah Luchansky

Who's afraid of strong $?

HIGHER VALUE OF DOLLAR BOON
TO OFWs, FARMERS, EXPORTERS
By Manny Piñol

People who are trying to paint a bleak picture of the Philippine economy because of the surge in the value of the US Dollars against the Peso are looking only at one side of the coin.

I am not an economist but I believe that the higher valuation of the US dollar would in fact be a blessing to at least three sectors of the country - the Overseas Filipino Workers, the Filipino farmers and fisher folks and the exporters of local grown or manufactured products.
Raelyn Luchansky
PTPA Raelyn Luchansky
For the domestic helper working in the Middle East who is paid $500 a month, the increase in the value of the US Dollar vis-a-vis Phiippine Peso from P46 to $1 to say P50 to $1 would mean that her monthly salary when converted to peso would increase from P23,000 to P25,000.

That may not be much but if you are a highly paid Filipino computer expert who through the years has saved $1-M, the value of his savings when converted to Philippine peso would increase by P4-million.

For the Filipino cavendish banana exporter who gets $5 per box and sells 100,000 boxes every year, his peso value earnings would increase from P23-M to P25-M while still paying the same amount of wages for his workers.

The greatest positive impact of the higher valuation of the US Dollar would be on local farmers and fisher folks who have been at the losing in view of the entry of imported items like pork, chicken, fish products, onion and even garlic.

As the value of the US Dollar increases over the Philippine peso, the importation of food items now would require more US dollars, a development which would give local products an edge.

With the onset of the Christmas season, poultry farmers, hog raisers and fishermen now would face the prospect of making greater margin of profits in the absence of competition from imported items.

Now, economists would argue that while the strong dollar would be beneficial to the OFWs, the farmers and fisher folks and the exporters, it would work against the interest of the big manufacturers, especially those using imported materials to process into products which are also exported.

Also, it would result in a spike in the prices of fuel and gas.

I would agree.

The increase in the price of fuel and gas would be minimal.

On the impact of a strong dollar to local processors and importers, my question is how much of the earnings of these big companies filtered down to the rural economies where the poorest of the poor in our society belong?

The answer: Hardly.

Which explains why in the past, while economists painted a rosy picture and positive growth of the Philippine economy because of the so-called robust investments, the poor in the rural areas have remained poor.

They have not benefitted from the economic activities and the economic windfalls have remained beyond their reach and even understanding.
Higher dollar value? Who cares!

Not me and certainly not the local producers who use raw materials emanating from the rural areas thus spreading the benefits to the poorest of the poor in the far-flung areas of the country.

This is the revenge of the neglected, the forgotten and the downtrodden.

#Changeishere! #PresRodyCares! #DuterteDelivers! #RevengeOfTheLocalProducers!

Manny Piñol: Higher dollar value benefits producers who use local raw materials - by Noah Luchansky Manny Piñol: Higher dollar value benefits producers who use local raw materials - by Noah Luchansky Reviewed by Raelyn Luchansky on 1:58:00 AM Rating: 5

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