Philippine Peso to witness an increase of 4%
Wilfred Son Keng Po who is a Managing Director of AIG Global Investment Corp. Asia Ltd was of the view that by the end of the year with the price rise easing up the Philippine Peso will see an increase of four percent. According to Mr. Po the currency which didn’t performed well for the past six months or so amongst the ten of the prominent currencies outside Japan will be reaching the four month high at forty-five per dollar by the month of December.
It also helps supervise the total assets of $117 billion in Asia leaving out Japan for the biggest insurer in America from the assets point of view. From Manila in an interview which was his personal point of view also, Mr. Po was of the view that by the end of the year the Peso probably will gain strength. He also added that if the prices of the oil remain stable it would add on to the slower monthly price rise.
In the previous six months the Peso witnessed a loss of 12.3 percent with the price rise accelerated to the sixteen year high at about 12.5 percent in the month of August. And due to the fall in the region’s equities made the currency of Asia weaker as compared to the Dollar. The standard interest rates of the central bank were also raised thrice in the current year to the six percent to put down the price rise. According to the reports from Tullett Prebon Plc in Manila the currency did a trading at 46.82 dollar at 12:24 pm.
Today, the Crude did a trading at $103.73 a barrel which showed a downfall of more than twenty-five percent from $147.25 in the month of July. This easies the costs for Philippine that is the main importer of its crude. Remittances from the Filipinos those are working abroad, which accounts to the ten percent of the total economy rose more than twenty-five percent from the previous $1.5 billion in the month of June. This is the highest since the records started to build in the year 1989. In the previous year around 1.06 million Filipinos worked overseas and out of which forty percent moved to the Middle East like- Kuwait, Saudi Arabia, Qatar, and UAE.
Mr. Po quoted that the demand for the nation’s workers has witnessed a rise from those countries those are benefited from the increased crude prices. On August 28 according to the National Statistical Coordination Board in Manila In the second quarter the economy increased to 4.4 percent but it’s the slowest since the year 2005 as compared to the modified in the earlier three months.