The strengthening of the Philippine peso against the US dollars might have dangerous implications to the economy.
Because of the peso appreciation, the imports and foreign travel will be cheaper. But the exports and tourism in our country will be more expensive to the foreigners. Our country can buy imports but the foreigners will realize that our exports are more expensive than the other competitors. They might be encourage to find another country that can produce the same product but in lower price. Secondly, there were still unemployed and underemployed people in our economy. Having a peso appreciation can cause another problem for the unemployed and underemployed rather than to solve these problems.
Third, it can reduce the income of the OFW workers. Fourth, it prevents new industries to establish in our country. Lastly, even though there is appreciation of peso, it doesn’t mean that our country is doing well because we are not like the other countries that have attained reduction of their problem in poverty.
