Depreciating peso reflects the country’s leadership, governance—economist

Depreciating peso reflects the country’s leadership, governance—economist

MAYBANK Research recently reported that the peso -dollar exchange rate could reach P60 to the dollar in the third quarter of this year.

This follows the continuous depreciation of the Philippine Peso.

Currently, the exchange rate hovers at over P58 to the dollar.

According to Dr. Michael Batu, an economist, the Philippines’ ongoing imports are one of the reasons for the peso’s decline.

“Why are we the weakest? It turns out it’s because more dollars are going out than coming in. In our case, demand is high because we import a lot, and the incoming supply is not strong, which weakens the peso and strengthens the dollar,” said Dr. Michael Batu, Economist.

Dr. Batu added that the weakening of the peso negatively impacts the prices of basic goods and services, and the rising costs of essential goods are making daily life increasingly difficult for every Filipino.

Living conditions of Filipinos under 2 years of PBBM admin remain low—economist

For Dr. Batu, the weakening of the peso reflects the leadership of the Philippines.

“Doc, is the weakening of the peso reflective of the weak leadership of the country?” asked by the anchor.

“Definitely— I answered that quickly. If we look at it, why is the value weakening? We import a lot. Why do we import a lot? Because our production does not keep up with demand. Why is production weak? Because our government fails to create proper conditions to increase production in our economy. So, at the end of the day, this falls on economic management,” answered Dr. Batu.

Living conditions of Filipinos under 2 years of PBBM admin remain low—economist

Because of the relentless increase in the cost of living in the Philippines, many Filipinos do not feel an improvement in their lives under the leadership of President Bongbong Marcos.

“We asked our fellow citizens if their standard of living improved over the past two years. Many of them would say it hasn’t. Our production does not keep up with demand. We have a shortage but what we do is just import,” said Batu.

Meanwhile, Dr. Batu laments that President Marcos’ trips to various countries have not resulted in actual investments— instead, they only brought pledges and promises.

“If we look at investor sentiment, it’s not very good in our country. Firstly, there’s the problem of inflation, governance, graft and corruption, and weak institutions. This environment isn’t conducive whet it comes to generating investments,” Batu said.

“Our president and economic managers need to sit down and create the proper conditions so that investment pledges can be realized into actual investments,” he added.

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