OWWA responds to calls to change Peso Dollar Rates

Philstar reports OWWA will adopt a flexible membership exchange rate

"To finally put a closure to the controversy over fees collected from overseas workers, the Overseas Workers Welfare Administration (OWWA) would soon be adopting a flexible exchange rate in the payment of membership fee.

OWWA chief Marianito Roque said the OWWA board has approved a new resolution providing adjustment mechanism in the collection of $25 membership fee.

“We recognized the volatility of the peso dollar exchange rate so starting January 1 we would be using a flexible rate based on the preceding month’s average,” Roque explained.

“This means that OWWA on January 1 will be recognizing the monthly average dollar exchange rate in December 2007 as basis in the collection of fees,” Roque added.

Roque said OWWA resolution No. 38 also provides a crediting mechanism that would extend for three months the insurance coverage for overseas workers who were overcharged by P225"

Seaweed exports to decline due to strong Peso Dollar rate

Seaweed exports industry expects to lose Php2 billion pesos due to strong peso, according to news in Inqiurer.net.

"The seaweed industry expects to lose more than P2 billion of the peso value of exports this year, largely because of the rapid rise of peso, an industry leader said.

Even if exports reached $180 million from last year’s $165 million, the peso equivalent this year would be much less than the 2006 level, said Benson Dakay, president of the Seaweed Industry Association of the Philippines.

Last year, with an exchange rate of P55-P56 to the dollar, last year’s exports reached more than P9 billion, Dakay said in an interview.

This year, at an exchange rate of P40-P41 to the dollar, sales are likely to only P7 billion, he said."

Peso Dollar rates range-bound

Peso Dollar rate in thin trading range according to Inquirer.net:

"Asian currencies moved in tight ranges on Thursday as the year-end festive season and continuing wariness about the US economy kept investors sidelined.

The Philippine peso hovered near 41.84 per dollar, flat on Wednesday's close, after briefly hitting 41.72 in early trade.

A small majority of analysts polled by Reuters expected the Philippine central bank to cut its overnight rate by 25 basis points to 5.25 percent later on Thursday, matching the US Federal Reserve's latest move."

Calls to Protect OFW earnings from Peso Dollar Rate fluctuations

Dan Mariano's Big Deal column in the Manila Times calls for protection to OFW money:

" MONDAY morning when this column was being written, the peso-dollar exchange rate opened at P41.40:$1 against the previous close of P41.21:$1. This allowed greenback holders to get more pesos for their money—but only briefly.

The consensus, especially in the Philippine Dealing System, is that the peso will continue to grow in strength thanks to the rising remittances of overseas Filipino workers—especially during the Yuletide, the positive developments in the Philippine economy and the continuing weakness of the American currency.

Along with other economic targets, the Development Budget Coordination Committee (DBCC) has revised its forex assumption to between P42 and P45 to the US dollar until 2010. It was the fourth time the Cabinet-level DBCC has had to revise its forex range. Last July it decided to adjust its assumption to P46-P48 from P48-P50 last January. The original target range was P51-P53.

This year alone the Philippine currency has risen in value by nearly 20 percent. According to DBS Bank Ltd., Singapore’s largest bank in Singapore, the Philippine peso beat nine other Asian currencies. The Indian rupee, for instance, appreciated by 12.4 percent and the Thai baht 7.5 percent.

The Bangko Sentral ng Pilipinas said the peso averaged P42.798:$1 as of end November—compared to the 2005 average of P46.549:$1.

Double-edged sword

That’s good news at the macroeconomic level. Closer to the ground, however, the peso’s spectacular rise is turning out to be a double-edged sword—wounding paradoxically the families of OFWs who are contributing mightily to the currency’s strength.

Calls have been made to artificially peg the peso-dollar exchange rate, but this would require the government to fork out billions of pesos in subsidy. In the long run taxpayers—including OFWs and their families here—would have to support the artificial rate through more taxes. Obviously this proposal makes no sense.

Meanwhile, BSP officials, notably Deputy Governor Diwa Guinigundo, have been urging OFWs—and exporters—to hedge their funds. The problem is that not too many banks are keen to extend this financial safety net to our compatriots abroad who see the value of their earnings erode on a daily basis.

Breaking ranks with the Shy­locks, the state-run Development Bank of the Philippines is reportedly planning to offer a hedging facility, which it hopes would help soften the negative impact of the peso appreciation on the buying power of OFW families.

Under the plan, OFWs who voluntarily subscribe to the program would agree to send home a fixed amount of dollars every month for at least one year through DBP’s remittance network worldwide. In exchange, the bank pledges to convert the OFWs’ dollars based on a pre-agreed exchange rate.

The Trade Union Congress of the Philippines has said it welcomes the DBP’s plan, which TUCP calls a “fixed” peso-dollar exchange rate, but is actually an innovative hedging mechanism."

Investors Sell Stocks, Peso Drops

From Bloomberg, concerns on Fed rate cuts spurs investors to sell off stocks, forces peso to fall.

"Asian currencies fell, led by the Philippine peso and the South Korean won, as concern the Federal Reserve will cut interest rates less than expected prompted investors to sell emerging-market equities.

All of the 10 most actively-traded currencies in Asia outside Japan dropped today as stocks slumped on concern faster inflation will slow consumer spending in the region's biggest export market. Foreign investors were net sellers of shares in South Korea, Taiwan and the Philippines, according to data from stock exchanges.

``The dollar is strengthening across the board,'' said Hideki Hayashi, a foreign-exchange strategist at Shinko Securities Co. in Tokyo. ``In addition, regional stocks slumped, leading to speculation investors will dump Asian equities.''

The Philippine peso plunged 1.1 percent to 41.655 at the 4 p.m. close of onshore trading, according to Philippine Dealing & Exchange Corp. South Korea's won closed at the lowest since Sept. 11, down 0.4 percent to 933.60, according to Seoul Money Brokerage Services Ltd.

The won may trade between 930 and 935 this week, Hayashi said.

Interest-rate futures on the Chicago Board of Trade show 80 percent odds policy makers will lower the target overnight lending rate between banks a quarter-point to 4 percent in January, compared with 96 percent chances a week ago.

``Given potential inflation, the Fed will probably cut less,'' said Jonathan Ravelas, market strategist at BDO Unibank in Manila. ``There will be some correction for emerging market currencies including the Philippines.''"

Peso slides against Dollar

From the desk of Doris Dumlao, Inquirer: Peso slides below P42-$1 level before closing at 41.98.

"The peso Tuesday slipped back to the 42-per-dollar level before closing at 41.98 as the market locked in gains while scaling back expectations of aggressive interest rate cuts by the US Federal Reserve, currency traders said.

Traders added that cash remittances from overseas Filipino workers for Christmas spending had thinned out this week because bulk of the money had been frontloaded in previous weeks.

The peso reached an intraday low of 42.08 to the dollar and a high of 41.80. At the end of trading it was down from Monday’s closing rate of 41.655 to the greenback.

The peso’s downward correction for the second trading session was expected after almost two weeks of rising to nearly eight-year highs, traders said.

Banco de Oro-EPCI Bank strategist Jonathan Ravelas said the peso was pulled down by a knee-jerk reaction to the dollar’s rebound against major currencies and by expectations that the US Federal Reserve would veer away from aggressive monetary easing. "

RP Gov't cuts Dollar Borrowings in Favor of Peso

In the Inquirer, the RP gov't is considering cutting dollar-denominated foreign borrowings in favor of peso-denominated local loans to ease pressure from the rising peso.

"The government may further cut its 2008 foreign borrowings in favor of domestic loans to ease the impact of a strengthening peso on exporters and families of overseas Filipino workers, Finance Secretary Margarito Teves said.

Teves said the government’s recently revised borrowing mix of 70 percent domestic and 30 percent foreign -- from the previous 64:36 -- could still be changed.

“As of the moment, this is the borrowing program,” Teves said at a news briefing Tuesday. “But the government could stretch it further to 75:25 in favor of more domestic borrowings depending on opportunities.”

Teves said a 30-percent foreign borrowing share next year would translate to $2 billion, or P90 billion at the exchange rate of P45 to the dollar that government officials use.

A 25-percent foreign share would be $1.67 billion, or P75 billion.

The peso recently broke into the 41-per-dollar territory, averaging 46.6 to the dollar from January to November.

The 2007 government budget had assumed an exchange rate of P47-P49 per dollar."

RP Gov't takes measures to stem Peso rise

From Forbes.com: RP Gov't upgrades growth target, takes measures to stem Peso's rise:

"The government also upgraded its GDP growth target for next year to 6.3-7.0 percent from 6.1-6.8 percent with brisk domestic demand seen making up for weak exports stemming from a US slowdown.

Exports are expected to grow by 8 percent and imports by 9 percent under the revised target for

2008 which policy makers approved on Friday. The forecast is also anchored on an inflation target of 3-5 percent and benchmark Dubai oil prices averaging 80-90 dollars a barrel, Santos said.

The peso is projected to trade at 42-45 to the dollar next year, weaker compared to current levels.

The local currency hit a high of 41.40 to the dollar in morning trade Monday, losing some ground after hitting a seven-and-a-half-year high of 41.13 on Friday.

The best performer among Asian currencies, the peso has gained more than 18 percent so far this year and looks set to conquer more ground in the coming days as overseas-based Filipinos send more money for the Christmas holidays to their families in the Philippines.

Halting peso's rise

Santos said the government is planning to pay more loans ahead of their maturity to halt the

peso's rise.

'We intend to prepay more foreign loans of the central bank and the government to create downward pressure on the peso,' he said. He did not provide details.

Last week, Finance Secretary Margarito Teves announced that the government would cut the share of foreign borrowings in its financing program next year while increasing the share of domestic borrowings as part of measures to temper the continued strength of the peso.

The government will reduce the ratio of its foreign borrowings to 30 percent next year from 36 percent this year, while increasing the share of domestic borrowings to 70 percent from 64 percent, Teves said.

The government is also reviewing loan agreements with foreign creditors to limit dollar inflows, Santos said

'To stem the strength of the peso, we are looking very closely at those ODA (official development assistance) loans, many of which are dollar-denominated. We are evaluating very carefully (the need) to limit ODA loans to those that are necessary for the Philippines,' he said.

'Dollar loans to pay for foreign goods and services, maybe yes, but dollar loans coming into the system in the form of cash, that is something the government should watch out for,' he said.

Santos said the government is 'comfortable' with an exchange rate of 42-45 pesos per dollar.

But the worry is that the peso could strengthen further given the strong inflows, bulk of which are in the form of remittances from Filipinos working abroad."

State of RP Economy a Picture of Mixed Images

In the Manila Times, Godofredo Roperos has mixed feelings of satisfaction and apprehension for 2007. Satisfied with surprising economic growth but apprehensive over sharp rise of peso against dollar.

"...

Indeed, the unusual rise in the value of the peso against the US dollar has generated undue implication not only for the OFW remittances but also for the exporters, further producing mixed images of the nation’s economy in 2007. The increase in the dollar value should improve the overall economic prospects of the country over the coming months. But instead it produced problems for OFW beneficiaries in the rural areas.

Many OFW families have contracted indebtedness through the purchase of residential lots, the construction of houses and the buying on installment of household appliances. When the peso started appreciating, the OFWs fixed remittances to their families with budgetary estimates anchored on the earlier peso-dollar exchange rate, begun to play havoc on their budget. While the remittance remained the same, peso amount diminished.

The same problem emerged in the export sector. “Exports grew by only 4.9 percent to $37.2 billion in the first three quarters from a year ago, prompting economic officials to admit that the official export growth target of 11 percent for the year was no longer attainable.” The official foreign exchange projection for the year was conservatively estimated to settle at an average of P47-P49 to a dollar, but this did not materialize."

Dollar gains on Peso

News from Reuters.com: Dollar gains on Peso and other Asian Currencies.

"Asian currencies fell against a broadly stronger dollar on Monday after U.S. consumer price data dampened prospects of further interest rate cuts from the Federal Reserve.

The Philippine peso briefly touched 41.50 per dollar, down about 0.7 percent from Friday's close as investors took profits after the currency's rapid gains in recent weeks.

"The peso is mostly offshore-driven and the market is taking profits from the peso's rapid rises as well," said a Manila-based trader. "But the bias is still to short the dollar."

The peso has gained more than 18 percent versus the dollar this year, making it Asia's top performer, with most of the gains coming in recent months as the dollar succumbed to U.S. housing and credit market woes."

 

RP Gov't to Adopt Peso Dollar Rate Range for 2008

News from the Inquirer: Gov't to adopt fixed range for Peso Dollar Exchange Rate.

"THE GOVERNMENT HAS ADOPTED an exchange rate of P42-45 to a US dollar as basis for the setting of economic targets and policies next year, taking into account the unexpected sharp rise of the peso this year.

The rate assumption was approved last Friday by the interagency Development Budget Coordination Committee (DBCC).

The foreign exchange and other macroeconomic assumptions are used as basis in drafting the government’s fiscal program for a year, including revenue collections and expenditures.

The DBCC’s technical board was said to have assumed an economic growth target of between 6.3 percent and 7 percent, in terms of gross domestic product, for next year.

In terms of the peso-dollar rate, the mid-point of a projected range is normally used. For next year, therefore, an exchange rate assumption of P43 to $1 will be taken into account in drafting the fiscal program.

The DBCC’s exchange rate forecast for next year took note of the projection made by the National Economic and Development Authority that the peso would remain strong next year at 43 to a dollar."

DBP to Fix Peso Dollar Rate for OFW's

DBP plans to fix peso dollar rate for benefit of OFWs, according to Balita.org.

"The Trade Union Congress of the Philippines (TUCP) has welcomed the plan of the state-run Development Bank of the Philippines (DBP) to offer overseas Filipino workers (OFWs) a fixed peso-dollar exchange rate.

This will soften the negative impact of the local currency's rise on the buying power.

Under the plan, OFWs may voluntarily subscribe to a program, under which they would agree to send home through DBP's remittance network a fixed amount of dollars every month for at least one year.

In return, the DBP would pledge to convert the dollars into pesos based on a pre-agreed exchange rate.

"We laud this initiative. This will not only protect OFWs and their families from further currency risks going forward, but also heighten competition in the remittance trade, which is crucially important in driving down excessive money transfer charges," TUCP spokesperson Alex Aguilar said."

Inquiry on inflated Peso Dollar Rate on OWWA and POEA fees

Gulfnews.com reports an inquiry into alleged overcharging by POEA and OWWA on OFW fees using inflated Peso Dollar Rates.

"President Gloria Arroyo has ordered an investigation into reports that a state welfare agency has been "overcharging" overseas Filipino workers (OFWs) on their membership fees.

In an interview aired by the government-run station Radyo ng Bayan, Presidential Management Staff chief Cerge Remonde said Arroyo has ordered a probe into the collection of fees from OFWs by the Philippine Overseas Employment Administration (POEA) and the Overseas Workers Welfare Administration (OWWA).

The fees being exacted on OFWs as part of "processing fees" are dependent on the peso equivalent of the dollar and some OFW groups have said these agencies have been overcharging OFWs from early this year when the peso started to gain strength against the US dollar.

They said the failure of the two agencies to take action in this regard is tantamount to "exploitation" of the OFWs. Remonde, on the part of the palace, said: "We will look into any report of exploitation of OFWs especially by the very agencies that are supposed to protect them."

Reports said both the POEA and OWWA are amenable to bringing down the fees but the question now lies on where the two agencies will start implementing a lower fee schedule for workers departing for foreign jobs.

Senate President Manuel Villar said steps should be taken to stop the "exploitative" situation.

Villar learned that POEA Administrator Rosalinda Baldoz and OWWA Administrator Marianito Roque, in an emergency meeting, agreed to revise the conversion rate applied in the collection of the $25 (Dh91.75) OWWA membership fee from 51 pesos a dollar to 42 pesos from January 1, 2008."

OFWs call for balance on Peso Dollar Rate

ABS-CBN News reports calls by an OFW group seeking balance on strong peso.

"Members of overseas Filipino worker (OFW) group Migrante in Saudi Arabia called on the Philippine government, specifically the Finance department, to help balance the strong peso and scrap the Oil Deregulation Law to help Filipino workers get more out of their income.

This came after Finance Secretary Margarito Teves announced on Wednesday measures to slow down the strength of the peso.

"Even as we welcome recent moves by the Department of Finance (DOF) to balance the strong peso by adjusting the denomination of foreign loans, we believe it still wouldn't be enough as long as prices of basic commodities continue to rise fueled by the oil deregulation law," said A. M. Ociones, Migrante coordinator in Saudi Arabia.

In the statement, Migrante welcomed the moves by the government to abate the strength of the peso, which include increasing the share of peso-denominated foreign borrowings in 2008 and the issuance of an additional P20 million government securities."

Peso Dollar Rate's continued rise endangers Bulacan garments industry

ABS-CBN News reports danger to Bulacan garments firms due to peso dollar rate's continued rise.

"The strong peso performance against the dollar may just shutdown existing garments factories in Bulacan by next year, stakeholders said.

Eilyn Or, the manager of Foremost Embroidery Center located at the RIS Industrial Complex here told The STAR that for this year, they only registered one with positive results as far as marketing is concerned.

The reason is simple.

The resurgence of the peso performance against the dollar which the government claimed as a sign of economic development in the country, partly due to the infusion of much needed remittances by overseas Filipino workers.

This recent development was compounded by the current trend in the global garments industry where international clients tend to look for cheaper production cost.

To this, the Philippines is competing with Thailand, Vietnam, India, China and even Bangladesh.

"This year, five of our clients moved to Vietnam," Eilyn said noting that international companies are their biggest clients, but those companies are always looking for ways to reduce their production cost by looking for sub-contractors that would offer them lower prices."

Peso Dollar Rate will rise on back of strong economy.

According to the Pacific News Center, the Peso is strengthening against the dollar due to the strong economy.

"The Philippine economy, considered as one of the top performers in Asia, is expected to grow by more than seven percent this year, based on projections made by the World Bank and the International Monetary Fund (IMF).

A combination of increased remittances from overseas Filipino workers (OFWs), increased investment inflows and a strong outsourcing sector will continue to pump more US dollars into an economy that is now regarded as one of Southeast Asia's brightest spots for 2007.

The strong economy has held the peso steady at P41 against the US dollar. Analysts, however, predicted a further strengthening of the local currency and it may test the P37.50 range in the coming months. "


 

Peso Continues rise against US and Dubai Dollar

In Khaleej Times, peso rises against both US and Dubai dollar due to surging dollar remittances from OFW's.

"Remittances by Filipinos from the UAE jumped 41.54 per cent for the 10-month period to Dh1.74 billion ($474.2 million) from Dh1.23 billion ($335 million) a year earlier due to increased awareness of sending money through banks, according to the Philippines' central bank.

These inflows helped bring to over Dh7 billion ($1.91 billion) the money sent through banks by overseas Filipino workers (OFWs) from the Middle East for the 10-month period, or up 26.52 per cent from Dh5.51 billion ($1.5 billion) a year ago. BSP lists only Kuwait, Saudi Arabia and the UAE under its Middle East category.

Governor Amando Tetangco, of Bangko Sentral ng Pilipinas (BSP), said in Manila that the increase in remittance inflows is partly due to improved access by OFWs to Philippine money transfer agents, noting that there have been growing partnerships between local financial institutions and their foreign counterparts.

Monthly remittances from the UAE, however, dropped 1.4 per cent to Dh171.43 million ($46.7 million) in October from Dh173.85 in September, BSP data released yesterday show, a fact that OFWs here ascribe to the declining value of the dollar against the dirham.

In September the remittances of UAE-based OFWs dropped 14.5 per cent to Dh173.7 million ($47.34 million) from Dh203.3 million ($55.4 million) in August, due to the continuing appreciation of the peso against the dirham.

...

On Thursday the Philippine peso continued its more than seven-and-a-half-year' rise at 11.11 against the dirham, which is worth 3.68 to the US dollar  based on the foreign exchange rate used by four major Philippine banks having tie-ups with exchange centres in the UAE. The dirham is officially pegged at 3.67 to the greenback."

Protection versus Strong Peso

A CFO's suggestion to protect remittances by William Depasupil of Manila Times.

Government contemplates insurance coverage for dollar remittances in this story in the Philippine Star.

In Godofredo M. Roperos's column Ground Level of the Manila Times, he cites that the strong peso hurts the rural economy. 

In spite of this, more OFW's are turning to savings to protect their hard-earned peso according to a study by the Philippine Information Agency. IMHO, not a good idea.

 

OFWs turn investors in Motherland

by Jemin B. Guillermo

Roxas City (14 December) -- The family of the Overseas Filipino Workers (OFW) are now investing part of their resources on savings.

The Bangko Sentral ng Pilipinas (BSP) survey shows that instead of spending on consumer goods, the OFW households are now setting aside money for savings.

In the third quarter of the year, 19 percent of the OFW households have already reserved their money for savings, the BSP study showed adding that, the figure has increased from 7.2 percent in the first quarter to 15 percent in the second quarter.

Overseas Workers Welfare Administration (OWWA) Western Visayas Regional Director James Mendiola earlier disclosed that they have already started organizing the OFW families in the different provinces in Region VI.

Mendiola pointed out that the move will not only make an updated inventory of OFWs and their family circle but also an opportunity for the government to train said households and OFW beneficiaries on financial management and entrepreneurship as another alternative source of income.

The recent BSP survey showed that the savings rate among families of overseas Filipino workers have been increasing steadily, indicating a gradual shift in their allocation of household resources

The bulk of the over $14 billion remittance by OFWs into the country were usually spent on food and other household needs, education, debt payments medical expenses, consumer durables and others, the same study revealed.

Only small portions of OFW remittances actually go into savings or are put into investments that would generate more income, the BSP said. (PIA)

More on Remittances

From Manila Time's Maricel Burgonio:

MONEY sent home by overseas Filipino workers (OFWs) hit a fresh peak at end-October this year, the Bangko Sentral ng Pilipinas (BSP) said Friday.

In a statement, the BSP said remittances increased 15.2 percent year on year to $11.9 billion in the first 10 months of year.

In October alone, remittance volume grew 17.1 percent year on year to $1.4 billion.

The BSP has been working to improve the remittance environment by facilitating their flow through formal channels, such as banks, and encouraging beneficiaries to channel their savings to investment instruments and entrepreneurial activities.

In its consumer expectation survey, the BSP said OFW families spent their remittances largely on food for about 97 percent of the respondents. Over 61 percent spent their remittances on education, 34 percent on debt payments, 29.3 percent on medical bills, and 17.5 percent on savings.

“The growth in remittances was consistent with the observed recovery in the number of overseas workers,” BSP Governor Amando M. Tetangco Jr. said.

Preliminary data from the Philippine Overseas Employment Administration (POEA) showed that total deployment in October climbed by 3.9 percent to 88,058. By type, the number of deployed land-based workers rose by 10.7 percent to 64,066, while the number of deployed sea-based workers contracted by 10.7 percent to 23,992.

POEA said the decline in the number of sea-based workers was traced partly to the delay in the workers’ visa issued by host countries and increasing competition from other countries.

Nonetheless, the increase in the deployment of land-based workers moderated the year-to-date contraction to only 1.1 percent to reach 915,333.

Tetangco said more Filipinos abroad were encouraged to send funds at home due to enhanced and expanded financial services and products of banks and nonbank channels.

The US, the United Kingdom, Italy, the United Arab Emirates, Saudi Arabia, Canada, Singapore, Japan and Hong Kong were the major sources of remittance flows.

Sustained inflows of remittance has helped lift the peso to multiyear highs, rising 19.3 percent and making it Asia’s best performing so far this year.

At the Philippine Dealing System, the local unit inched up to 41.21 against the dollar from Thursday’s close at 41.240.

Antonio Agcaoili, Asia United Bank (AUB) senior vice-president, said the peso is likely to end within a range of 35 to 37 against the greenback next year from an estimated 40.50 this year, aided by strong foreign direct investments (FDIs) and remittances.

“US dollar is expected to weaken further next year and more FDIs are expected to come in [for] business process outsourcing [BPO] and [the purchase] of government power assets,” he told reporters.

Agcaoili said economic growth is seen at 6.5 percent to 7 percent next year due to the same inflows responsible for the peso’s appreciation. He expects remittances of about $17 billion to $18 billion next year.

October Remittances up to 1.4 billion dollars

Doris Dumlao reports in Inquirer.net that Jan-Oct dollar remittances are up by 15.2%.

News in Xinhuanet.com cites October remittances at 1.4 billion dollars.

Remittances to the Philippines coursed through banks surged by 17.1 percent to a record high of 1.4 billion U.S. dollars in October as overseas Filipinos sent home earnings before the Christmas season, the country's central bank BSP said on Friday.

    The October figure brings the level of remittances for the first ten months of the year to 11.9 billion dollars, an increase of 15.2 percent from a year ago, the central bank said in a statement posted on its website.

    Most of the remittances came from the United States, the United Kingdom, Italy, the United Arab Emirates, Saudi Arabia, Canada, Singapore, Japan, and China's Hong Kong, the BSP said.

    The growth in remittances was also consistent with the recovery in the number of overseas workers, the BSP said, citing preliminary data from the Philippine Overseas Employment Administration (POEA).

    The POEA data showed that total deployment number in October climbed 3.9 percent to 88,058, the fourth consecutive month that the deployment figure was higher compared to the respective year ago level.

    "The sustained increase in remittance inflows may also be attributed in part to greater access by overseas Filipinos to Philippine money transfer agents as the number of remittance centers and tie-ups with foreign financial institutions increased, reaching out to a greater number of Filipino remitters abroad," the BSP said.
 

 

 

Peso Defies Asian Currency Plunge, rises against the Dollar

More news on the peso strong climb against the dollar.

Inquirer.net reports Peso defies Asian currencies decline. Another report cites moves by the Federal Reserve to ease the credit crunch. This early, there is speculation that the peso may test the 37 to $1 level by 2008.

Balita.org says the peso surge due to dollar remittances from OFW's abroad.

Peso Dollar Rate in record high

The Peso Dollar rate in highest close for the last 7 1/2 years according to Bloomberg. The peso has been on a steady climb against the dollar for 11 straight days as dollar remittances from OFW's continue to come in for the Christmas season.