Pinoy in Singapore

2009 hit a record high of US$17.3 billion in OFW remittances despite the great global recession.  I can’t even imagine how much that is in Philippine pesos.

So with the inflow of US dollar into the country, the exchange rate is strengthening in favor of the Peso.  That’s good news if you’re online shopping in the US using your Pesos because it comes out cheaper.  But it’s bad news for me, and all other OFWs who are sending money back to the Philippines because it takes more dollars now for the same amount of peso that we’ve been remitting before. 

Just last year, I remitted money through iRemit with the exchange rate of P33.40 to a S$1.  But now the exchange rate hovers around P32.40 to S$1.  That’s P1 less than the previous exchange rate I got!  It adds up quite a lot when I need to remit in the thousands.  That’s (in theory) P1000 pesos lost for every S$1000 I remit and I need to remit more than that soon.  I’ve been waiting for the exchange rate to improve in my favor since December and  I know from experience that December is the worst time to remit because everyone else is doing the same which drives the exchange rate against your favor.  But it’s almost March and the exchange rate is nowhere close to P33 at least.

I guess I wouldn’t be so bothered if the strengthening Peso actually translates to an improvement in quality of life in the Philippines.  But it doesn’t seem to be the case.  On the contrary, a strengthening Peso affects more Filipinos negatively since so many families rely of OFW remittance. So it either takes more dollars for an OFW to remit back home or it gives less Pesos for the receiving families.

Wouldn’t it be nice if the next President can make it so that Filipinos wouldn’t need to go overseas to provide a decent life for their families in the Philippines?  I wonder what the presidential candidates have planned for the OFWs.

I’m not an economist so if anyone can enlighten me on the tangible benefit of a strong Peso, please do.  And I say tangible because the nation’s debt getting smaller on paper doesn’t count as tangible to me.