Mixed signals
Posted on March 16, 2006 - Filed Under General |
WHERE I am strong, there I am weak.
Trusty, old Philippine peso is a confused chap these days. Where government and most every financial watchdog say a strong peso is a banners-high signal for this crisis-laden country, there's the National Economic Development Authority (NEDA) and a whole range of exporters fidgeting and biting their nails over its "superb" performance.
Against all the hossanahs and glory-bes emanating from Malacanang at the strong rally of the peso the past weeks, hitting the P50-to-a dollar level, Romulo Neri of NEDA mustered the gall and the gumption to express the opposite — a morbid fear that sucha strong peso is one bad thing.
Uh, huh, what's this? A discordant note?Neri and the export sector actually are in morbid fear of the peso appreciating in value against the mighty US dollar. Ohboyohboy, they actually want it to depreciate to the former level of P53-P55 to $1 dollar range! Reason? Such a level would be good for the export sector. Why so? Exporters and overseas workers earn more pesos in exchange for their dollars.
And so they want the Central Bank to now "intervene" before the peso breaches the next notch of P49; once it does, they'd probably go to town with murder in their eyes.
Hilong talilong ngayon the peso, not knowing where to go — up or down?
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