Philippine Peso to further weaken to PHP 58.00

With the social issues our country is currently having, a lot of Filipinos are being alarmed with the price of commodities and goods as well as the dollar-to-peso exchange rate. Currently, the status of the Philippine Peso is alarming as it is at Php54 to $1. However, projections by specialists and economists before the year ends is that the value would be at Php58.00.

The Philippine Peso is expected to go down in value further as it is projected to fall at a staggering Php58.00. One of the main factors is that the trade-in-goods shortfall will proceed to widen due to the programs and releases under the Duterte administration.

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Effect of the typhoon Mangkhut (Ompong)

Typhoon Mangkhuy “Ompong” as we know it here in our country, has led to the increase of the price of goods and commodities nationwide. With this, we can expect the permanent incline in the prices of goods even though the typhoon’s effect to our country is temporary.

As of the moment, food and goods prices are already skyrocketing. Meat, vegetables, rice, and fish are expected to increase a staggering 2.4% over the inflation rate of 6.4% last month.

Capital Economics, a research consultancy operating in London, said that the disasters should serve as a lesson to all of the governments all over the world. That these natural disasters would have a temporary impact on the gross domestic product GDP.

The lesson from previous natural disasters is that there is likely to be a short-term negative impact on the gross domestic product, followed by a rebound supported by reconstruction efforts. Perhaps a bigger worry from an economic perspective is that ‘Mangkhut’ damages agricultural production, leading to an increase in food prices. This would put further pressure on the Bangko Sentral ng Pilipinas to tighten monetary policy.”

As of the moment, the most recent government reports and data showed that by the end of July, the trade-in-goods balance further became vast to $22.49-billion arrears. This is 72.3% larger and more complex than last year’s $13.06 billion.

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The Bangko Sentral ng Pilipinas (BSP) reported that last Friday, the 14th of September, 2018, the current deficit toppled up to $3.1 billion from the year’s first half of $133 million. The first half (January to July), imports jumped to 15.7% every year to $61.23 billion while exports on merchandise decreased to 2.8% ($38.74 billion).

As of the moment, the value of the Philippine peso depreciated by almost eight (8) percent against the U.S. dollar. Right now, it is being dubbed as the “worst performing Asian currencies” so far this 2018.

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