The Philippine peso has kept its rising trend against the US dollar, with far-reaching implications on Overseas Filipino Workers (OFWs) and their respective families in the Philippines. With the strengthening of the peso, families who depended on remittance are now struggling, as each dollar remitted back home translates to fewer pesos. The Philippine family gets ₱400 less for every $100 remitted, compared to what they would have received earlier.
The appreciation of the peso is a result of a mix of local economic forces and currency movements across the globe. A stronger peso generally is regarded as an indication of stability in the economy, but it is a double-edged sword for most Filipino families who live on remittances. The reduction in peso amounts is intensifying the financial burden on families that use such money for everyday spending, education, and medical care.
Remittance-reliant families are starting to feel the impact as the buying power of their remittances is eroding. Remittance experts advise OFWs to diversify into alternative remittance avenues or wait out the remission until the exchange rate is more favorable. Others also advise that families scale down their budgets accordingly to compensate for the decline in pesos received and still be able to honor their financial obligations amidst the change in currency value.
With remittances contributing significantly to the GDP of the Philippines, this persistent movement of exchange rates could have far-reaching effects on families at large and the economy as a whole. The situation points to the tightrope act between maintaining currency stability and the real-life effect on individuals’ pockets.
