Thursday, November 08, 2007

OFW money, Oil Prices, and Inflation

Our OFWs should not complain too much about the current exchange rates of the Peso. Do you remember the years, way back in early 90's, that a mere change in the oil prices in the world market by a few dollars triggers massive transport strikes and price increases of commodities in the country?

OFWs are the modern heroes. One of their duties is to save the country from perennial crisis. Including saving their families and the rest of our countrymen from escalating inflation, among others. Our OFWs had done their heroic roles, greatly, I would say; particularly for the past few months. Despite the oil prices reaching near 100 dollars per barrel, I can still buy my can of sardines at relatively the same price months back (June 2007).

I wonder if our OFWs are not sending dollars, and if the Peso did not strengthen from 55 to its current rate of 43. How much inflation, that is, what rate would fares and prices go up, when the oil prices move up from 65 sometime last year, to today's almost 100 dollars per barrel?

I think,and definitely, the strengthening of the Peso, and the reduction of the OFW dollars in Peso terms sent to their families, are somehow compensated by the tempering of inflation in the country. Otherwise, the Peso value of dollars sent by our OFWs, even if it increased to 60 to the dollars, would have been futile, if a much larger inflation happened; i.e. if the fares and prices more than doubled relative to the almost doubling of oil prices in the world market.

Out OFWs have contributed their part and played a heroic role to save our countrymen from crisis and misery.

If only, our government officials would do the same; if only they would also do their duties, greatly. Hay....I know it is wishful thinking. Kailan kaya?