The Losing Power of the Pinoy Peso-- Again!

[4wrider]

There will be winners and there will loser in the devaluation of peso. Sure some exporters will come out with more competitive prices for their products and OFW's remittances will get to buy more here. But exporters of electronics, which by far the biggest in the country accounting for more than 40% of the total exports, will likely suffer because most of them are actually just toll assemblers of imported parts.

American and Japanese tourists will be happy to spend here but citizens of other countries whose currencies deteriorated may not feel like coming here.

Real property should be benefitted by a lesser valued peso if only Fil-ams and OFWs can keep their jobs abroad.

The mostly imported cars being sold here will definitely be higher if peso devaluation is the only factor being considered and us here, tsikoteers are the worse for it.

[tidus1203]

No one is a winner in this particular situation of peso devaluation because its more of deleveraging selling. Exports are only good if you can sell it. If you can't sell your exports the weak peso is irrelevant. Tourist visits especially from Western nations will decline, but the Japanese are savers so maybe they might still come but even so the Japanese are very prudent when it comes to money so luxuries like vacation trips might be delayed.

[Gen. Miting]

the devaluation of peso will bring in more BPO's here. if bpo's came into existence bec. it's a fraction of an expense of a intl. company. mas lalo sila pupunta dito coz mas cheaper ang labor

[tidus1203]

^^The problem is the BPO's client (US companies) are having tough times and will scale down. While some of them are already bankrupt.

[uls]

Ya no matter how cheap outsourcing to the Philippines will become, if the US companies are on the verge of bankruptcy, there's nothing to outsource

[jpdm]

Ya no matter how cheap outsourcing to the Philippines will become, if the US companies are on the verge of bankruptcy, there's nothing to outsource

hmmmm....how about UK outsourcing firms.....

[tidus1203]

The UK is also in terrible shape. UK is already in recession officially and the US believe it or not officially is still not in recession as of this posting. Recession being two straight quarters of negative GDP. But of course that is baloney and the US has been in recession since last year but the government always "doctors" the figures.

[uls]

where do BPOs get their earnings from?

Western companies

what happens when those companies shut down?

the BPOs have no more income.

Look at the source.

Many US and European companies in trouble.

just look at the what's happening in corporate bond market

NEW YORK, Nov 20 (Reuters) - U.S. credit default swaps widened to record levels on Thursday that suggest investors anticipate the worst period of investment-grade corporate bond defaults since at least 1980, according to analysts.

The main investment-grade credit default swap index widened by 22 basis points to 267 basis points, according to data from Markit Intraday. It had hit a record 275 basis points earlier on Thursday.

Concerns about the ailing commercial real estate market, fears of rising defaults and mounting troubles at U.S. automakers were weighing on investors' appetite for risk, strategists said.

In cash bonds, the corporate bond market was "falling apart" with spreads gapping wider, a trader said.

Companies will be defaulting on their debt in the coming months.

Even if the BPO cheerleaders keep telling everyone their businesses will be booming,

i will still be looking at the sources of their income --- the Western companies...

and they don't look like they're in good shape

[jpdm]

Well, let the peso slide further...

so that exporters will earn more...

OFWs will earn more..,

Local manufacturers using local materials will earn more....

A depreciated peso will discourage massive importation and will compel pinoy to use more local products and raw materials...

Agree with these.

The real drivers of the economy are the exporters (that uses more local materials) and OFWs.

Let the importers pay more for their imported merchandise...perhaps to force them to source their materials locally.

In the first place when they import, they are not helping per se the economy.

A weak peso will forced OFW to do the same buy more local goods with their additional peso...

Philippine Star
Updated November 21, 2008 12:00 AM

Indigenous products boost RP exports


Exports last September would have gone down were it not for the hefty growth of a handful of indigenous products, data released by the National Statistics Office (NSO) on export performance show.

But demonstrating resiliency in a crisis situation, food products kicked up five percent on export sales of $210.84 million compared to exports in the same month last year of $200.75 million. Bestseller was tuna with revenues of $40.95 million, up by an impressive 113.1 percent over exports in September 2007.


Growing at a double-digit rate of 17.9 percent were mineral products including gold, silver, copper, nickel and zinc on the strength of $268.60 million in export sales from $227.74 million the same month last year.


Woodcraft and furniture likewise remained strong, growing by 14.4 percent from $88.66 million sales last year to $101.39 million this September.



If its over $100 million monthly sales is sustained until yearend, furniture will break into the exclusive club of billion dollar industries in the Philippines presently occupied only by electronics, garments and food.


[SIZE=4]The combined growth of Philippine products whose raw materials are sourced locally[/SIZE], had given total export performance of $4.44 billion above water by 1.2 percent for the month of September over exports in the same period last year amounting to $3.38 billion


On a year-on-year basis, January to September export performance totaled $38.86 billion, still higher by a modest 4.04 percent over the same months in 2007. - Philexport News and Features

Indeed, a devalued peso will force exporters to use more locally source materials.

Electronic exports should use more local raw materials to provide more earnings to our country...

[uls]

all those are lagging indicators

puro data yan from months ago

ngayon lang nilabas sa news

the economy wasnt as bad months ago