Discussants:
Mr. Ramon G. Opulencia, Treasurer and Managing Director, Ayala Corporation
Dr. Francisco G. Dakila, Jr., Acting Director, Center for Monetary and Financial Policy, Bangko Sentral ng Pilipinas
The peso appreciation is ravaging the prospects of our dollar-earning sectors. Jobs are being lost and investment and expansion plans are being shelved. Some firms are considering relocating to other countries. Our OFW heroes are being treated as doormats.
Historically, rapid appreciations have also seeded economic bubbles that eventually morphed into banking and financial crises: the Mexican tequila in 1994, the Asian Crisis in 1997-8, the Argentine Crisis in 2002 and the Japanese Bubble in the late 80’s and eventual banking crisis in the 90’s. It is more ominous if it flows from the Latin American Syndrome which is anchored on a romance with the strong peso. We look at what may be doable to stem future appreciation and its offspring of sustainable penury in a remittance driven economy.