... in response to Peso = P52 : $1, posted by Kreeger on Aug 22, 2002Joe,
Like Nathan said, the Peso has been fairly steady for the last couple of years. I don't think it's moved more than 3-4% either way in that time.
But you're right, that a weaker Peso hurts the Philippines. The people who live on remitted dollars are the ones who make out when the rate goes up. I remember when the exchange rate was fixed at P3.85/$1 but I think the Filipinos are better off now than they were then. Back then, most people couldn't afford a refrigerator, T.V., or air-conditioner, let alone an electric fan. Now the electric power supply is much more stable, the roads are better, and telephone service is available most everywhere. I see more cell phones in the Phils than I do here. So, the standard of living has improved greatly and fewer people are starving.
One thing that really did hurt them economically was the closing of the U.S. military bases. The Pentagon used to be the second largest employer over there, behind the Philippine government. And those were good paying jobs with union benefits in most cases.
Ray
