Appreciation of the Philippine Peso against the U.S Dollar
By Troy Ayala
Most countries incur foreign debt and also domestic debt to maintain and support the wheels of their economic situation because of their inability to increase their income to finance the needed budget.
The income must come from the outside not from within. A country must make money from other countries through exportation of their products to increase their income. Earnings or income coming domestically or from local consumers makes only the money circulate and will not increase the amount unlike when the source of the income is externally. Then there will be an increase in the amount of the money already owned. To increase the external income of a country, good and attractive products must be discovered, produced and be successfully exported.
This is the duty and obligations of politicians and government officials together with the populace to discover what will be worth of producing income.
Inventors and scientists are of great help on the matter of discovering products that can be good and useful to other countries to attract their attention to buy such products or discoveries.
The concern of the world now is the fuel “Oil, gas, etc” for our transportation systems; land, water and air, like cars, ship and airplanes.Fuel is also needed for machinery or factories and other industries.
Foreign investors can also contribute to the economy of a country in addition to tourism. To attract investors and tourists the peace and order situation of a country like the Philippines must be good if not at its best.
Philippines peace and order is affecting its economy. The Philippine armed forces and other law enforcement agencies are trying to solve this peace and order problem. Concerning the Philippines foreign and domestic debt of more than 4 trillion pesos from foreign debt and local lenders this affects our financial standing among other countries.
Remember, the appreciation of the peso against the dollar is a sign of the decline of foreign contingent debt, this happened at the end of February. Contingent debt is mostly the guarantees issued by the government. The dollar equivalent of the Philippine peso was at its best during the term of 9th president Diosdado Macapagal from December 30, 1961 – December 30, 1965 (He is the father of former president Gloria Macapagal Arroyo) before the Ferdinand Marcos dictatorship.
The Philippine government is always attempting to improve its economic condition but peace and order is interfering in this attempt.
Although, it shows peace and order in the Philippines now is improving particularly in central Luzon except in Mindanao hoping that there can be peace in these Islamic regions where natural resources can be explored thus improving the economic condition of the Philippines benefiting especially the Muslims in the area who are also Filipino citizens.
Until proper solution can be attained and be applied this peace and order problem will not come at its end thus affecting its economic condition, leading to the decline in value of the Philippine peso against the United States dollar.
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