ITS AFTER EFFECTS

We have heard and seen the controversy about the all-time low rate of the Dollar-Peso exchange in the news and on social media. To some, this is just bad news and another problem, but in order to comprehend it further, we must first grasp what it is and how it affects our economy and, most importantly, us, the citizens. This controversy means that the equivalent of a Philippine Peso to a US dollar or $1 is increasing, and it has increased, resulting in the lowest ever recorded Dollar-Peso exchange rate in our history since 2005. As of this month, the Bangko Sentral ng Pilipinas has recorded that it has dropped to P59:$1.

According to Rizal Commercial Banking Corporation’s chief economist Michael Ricafort, the peso has declined by 12% versus the US dollar since the beginning of 2022. Meaning that more pesos would be required to pay the same amount in US dollars. For instance, imported goods like petroleum, which are purchased with dollars, will be more costly to buy using our money, and it may have an impact on local prices. On the contrary, this has benefited our Overseas Filipino workers; the majority of these workers receive US currency as payment. If the Philippine Peso falls in value, they will have more money after converting their salary into our local currency. However, a strong dollar versus a lower peso alters the items in our country’s consumer price index. Inflation is what we are currently seeing as a result of the poor Dollar-Peso exchange rate.

All Filipino residents in the marginalized sector have been hit the worst by this phenomena. When the pandemic began, several businesses were forced to close for safety reasons. Workers are out of work and struggling to put food on the table. Prices have doubled. By that time, inflation had set in. Today, however, is similar but different; inflation has more than doubled. From every aspect, it is clear that everyone is attempting to survive the pandemic and inflation.

Parents with blue-collar jobs might be paid only a little amount of money, not enough to buy the needs of their household due to pricey goods. In this state, the parent might take on multiple jobs to satisfy the needs of the family, never minding the exhaustion. Sometimes, people that live in this manner endure the rough environment, not minding the risks they are exposed to just to survive.

Students confront the same obstacles as everyone else, especially those who study outside of their homeland. Academics cannot be their sole issue. It is difficult to budget money in a month when everything is so expensive. They have boarding house rent to pay, meals to purchase, and academic expenses to cover. To solve these financial concerns, one could become a working student. As a result, it could have an impact on their education.

The Dollar-Peso controversy is not just about how it changed our economy based on statistics presented on television and in the news. It is about how it burdened and changed every detail of Filipinos’ lives.