The Personal Finance section of the Inquirer Money has this piece of advice for OFWs and their families on how to cope with the lowering value of their dollar remittances.
Question: My husband’s $1,000 used to give us P55,000; now it only amounts to P41,000. Iâ€™m having difficulty making ends meet and paying all our bills. How can I wisely handle this remittance in spite of its dwindling value? â€“ Catherine C.
Aswer: The peso is stronger than ever and remains on the upswing. While the US dollar continues to weaken due to developments in the US subprime mortgage market, the Philippine peso is riding the waves, doing much better than other Asian currencies.
Remittances from OFWs have been coming in strong, thus there is much supply of dollars in the Philippines. This makes the peso appreciate even more. While this is good news for importers (since goods they are importing from other countries are now cheaper), it is bad news for exporters, since they are paid in foreign currency for the goods they export.
OFW families are also greatly affected, as you have experienced. Whereas before, the US dollar fetched a higher peso value, now itâ€™s much lower than before.
Analysts say the Philippine peso will remain strong this year. Given that scenario, it will be wise to take steps to cope with the effects of a strong peso.
Below are simple ways you can adopt to deal with this development:
- Tighten your belts
- Budget wisely
- Prioritize what’s needed
- Do not go into debt
- Find ways to increas your income
- Save for a rainy day
- Talk to your husband
Details of this article available at Inquirer Money – Personal Finance: Coping with a strong peso
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