OPINION | P57.43/$: Where do we go from this record low? By Raul V. Fabella READ:
The challenge is how to respond moving forward so that the adversity it has sown is turned into the seed of a better, more resilient future harvest. History has object lessons here.
It was the correct policy move then since a further drop to P35/$ would have decimated the Manufacturing sector already emaciated by almost a decade-long appreciation of the peso from its low in 2004. But this determined defense of the peso sat uncomfortably with the BSP’s self-imposed ination targeting, with the market being the ultimate arbiter of the exchange rate. The headline ination was 3.3% in November 2013.
Both the yuan case and the BSP 2012 cases revealed a line of resistance. The difference is where the line of resistance is drawn. The Chinese monetary authority’s line of resistance is drawn where a trade surplus becomes a permanent fixture of the Chinese economy; this means a manufacturing sector that outsells competitors at foreign outlets like Walmart or Sainsbury’s.
To the clamor by the private business for relief from killer high interest rates, the BSP responded with, “Let them borrow abroad!” The private sector, heeding the BSP advice, was thus led like lambs into the slaughter of the 1998 Asian Financial Crisis! And President Fidel Ramos’ highly touted tiger cub economy became the collateral damage!Now that we are at P57.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
LIVE UPDATES: United Nations General Assembly 2022Here are more photos of President Ferdinand Marcos Jr. at the 77th United Nations General Assembly. He is set to deliver his speech early Wednesday, September 21 Manila time. Photos from the Office of the President UNGA LIVE UPDATES:
Read more »
RESULTS: September 2022 Agricultural and Biosystems Engineer Licensure ExaminationICYMI: The Professional Regulation Commission announced that 832 out of 1,968 passed the Agricultural and Biosystems Engineer Licensure Examination. Congratulations to all the passers!
Read more »
In Germany, energy price shock triggers fears of insolvency waveSome 718 German entities become insolvent in August 2022, a 26% jump over the previous year.
Read more »
Miss Universe 2022 to be held in USAInstead of the usual December pageant, it will now be held in January 2023. MissUniverse
Read more »
Comelec to put serial numbers on ballots for 2022 brgy, SK polls —GarciaThe Commission on Elections (Comelec) will print serial numbers on the ballots that will be used in the 2022 Barangay and Sangguniang Kabataan Elections (BSKE).
Read more »