Kabayan not in favor of fixed forex rate for OFWs

Pegging the peso-dollar rate at P50:$1 for overseas Filipino workers (OFWs) won’t be easy to implement, according to Vice President Noli De Castro, concurrently the presidential adviser on OFWs. Instead of having a special foreign exchange rate for OFWs, a section of society who bear the brunt of a strong peso, De Castro suggested that concerned government agencies take a look at other options to help OFWs and their families mitigate the impact of the peso appreciation. A group of OFWs based in Jeddah, Saudi Arabia has initiated an online petition for overseas Filipinos asking President Gloria Macapagal Arroyo to fix the peso-dollar rate at 10 percent premium above the market rate or peg it at P50:$1. “Mukhang mahihirapan tayo d’yan. Nagtanong na kasi ako sa mga concerned agencies tungkol d’yan at ang sabi nila mahirap ‘yan kasi exchange rate ‘yan, hindi kontrolado ng gobyerno," de Castro said in a phone interview with GMANews.TV. “Kasi ang proposal yata is to fix the exchange rate at P50: $1. ‘Yung balance papaano? Subsidize ng government? Magkano ‘yon (subsidy), they should tell us," the Vice President said. De Castro said he thought of asking the Bangko Sentral ng Pilipinas (BSP) to reduce bank charges on remittances from Filipinos abroad. “However, I was informed that it is not necessary because of the stiff competition on the dollar remittance services, a lot of these establishments are already offering much lower rates," he explained. “Pero ang sabi ko nga pag-aralan pa rin kung ano pa ang pwedeng magagawa natin para matulungan ang mga kababayan nating OFWs dahil sa paglakas ng piso," he said. Because of the strong peso, the purchasing power of OFWs and their relatives dependent on remittances from abroad depreciates. The beneficiaries of an OFW sending $100 when the exchange rate was at P56 were receiving P5,600. The amount the same family receives now is just a little more than P4,500 because the peso has appreciated against the dollar to below P46. On Wednesday, Malacañang indicated an open mind about the petition of OFWs for a ‘special’ forex rate. “We will ask our economic team to look into it," said Executive Secretary Eduardo Ermita in a news briefing at the Palace. “Let us find out from the economic team, especially the BSP (Bangko Sentral ng Pilipinas) and the DoF (Department of Finance), but I have no specific reaction coming from our authorities as to how this will affect the economy because that’s one sector, the OFWs, are asking for," Ermita told newsmen. “We don’t know how it would affect our fiscal program. Now, remember we are also looking at our overall program, among them being the balancing of our deficit and, to be able to do that, we should have good tax collections and we don’t know the effect of having such a proposal approved," said Ermita, a former military officer. “All we know is that the improvement of the peso against the dollar is a positive improvement as far as our economic factors are concerned," he said. Turning down the idea of a “special" forex rate, BSP Governor Amado M. Tetangco Jr. has reiterated the government’s policy of allowing the market to determine the currency exchange rate. - Fidel Jimenez, GMANews.TV