This is a very simplistic view. I hope it makes sense, hehehe.
Now, the first question we ask is why is it at 40?
I think this is because our OFWs sent an unprecedented 14.5 billion dollars this year. Also, our exports are growing every year. There is a surplus of dollars on the Philippine system. There is just so much its value depreciated to just around 40. Many are afraid it will go down to around 30s this year.
The government reported that for 2007 we have over 5 billion dollars in BOP surplus. If the government dispose these surplus dollars, is it safe to assume that the Peso will move to 45 something or even lower because there will be fewer dollars around? What do you think?
If the government cannot dispose these surplus dollars to weaken the Peso; then my suggestions are as follows:
1. Spend 1 billion dollars to construct a train system for Mindanao. Get the Chinese constructors if you want – of course, better if Pinoy.
2. Spend 1 billion dollars to provide computers to all schools in the country.
3. Spend 1 billion dollars to provide farmers with tractors and other farm inputs.
4. Spend 1 billion dollars to repair classrooms and roads.
5. Spend 1 billion dollars on health care.
Now once these dollars are gone. The peso hopefully will depreciate to 50, hehehe, and
1. Our OFWs (10 million of them excluding their dependents) will be happy.
2. Our exporters will be happy.
3. Our exports will be more competitive in the world market.
4. And lastly, bloggers like me, will be happy as our adsense income in Peso value will increase, hahaha.
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By the way, only GMA is happy that the Peso is around 40.
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I hope this can be done as simple as this. But it is not this simple. All I am saying is: the government should find a way to spend those dollars fast and wisely, before the Central Bank accumulate more, before the Peso reach 30's. Remember our OFWs will be sending at least 15 billion dollars this year! And so our BOP surplus will get bigger and bigger if you do not spend them.
Now, the first question we ask is why is it at 40?
I think this is because our OFWs sent an unprecedented 14.5 billion dollars this year. Also, our exports are growing every year. There is a surplus of dollars on the Philippine system. There is just so much its value depreciated to just around 40. Many are afraid it will go down to around 30s this year.
The government reported that for 2007 we have over 5 billion dollars in BOP surplus. If the government dispose these surplus dollars, is it safe to assume that the Peso will move to 45 something or even lower because there will be fewer dollars around? What do you think?
If the government cannot dispose these surplus dollars to weaken the Peso; then my suggestions are as follows:
1. Spend 1 billion dollars to construct a train system for Mindanao. Get the Chinese constructors if you want – of course, better if Pinoy.
2. Spend 1 billion dollars to provide computers to all schools in the country.
3. Spend 1 billion dollars to provide farmers with tractors and other farm inputs.
4. Spend 1 billion dollars to repair classrooms and roads.
5. Spend 1 billion dollars on health care.
Now once these dollars are gone. The peso hopefully will depreciate to 50, hehehe, and
1. Our OFWs (10 million of them excluding their dependents) will be happy.
2. Our exporters will be happy.
3. Our exports will be more competitive in the world market.
4. And lastly, bloggers like me, will be happy as our adsense income in Peso value will increase, hahaha.
-------------------
By the way, only GMA is happy that the Peso is around 40.
-------------------
I hope this can be done as simple as this. But it is not this simple. All I am saying is: the government should find a way to spend those dollars fast and wisely, before the Central Bank accumulate more, before the Peso reach 30's. Remember our OFWs will be sending at least 15 billion dollars this year! And so our BOP surplus will get bigger and bigger if you do not spend them.