Exporters welcome competitive peso

MANILA, Philippines - Exporters welcome the weakening of the peso against the dollar, saying this will make their products cheaper abroad and thus more competitive in the global market.

“It is now a welcome relief that the peso is beginning to depreciate. I am sure a lot of exporters are now happier not to mention the OFWs (overseas Filipino workers),” said Erdy Feliciano, vice president of Philexport Region III.

Feliciano said exporters can enjoy a “little bit” of a positive bottomline with the depreciation of the local currency.

“We can be more aggressive on pricing which eventually mean more business and jobs in the long run,” he said.

“It’s good news for the industry. This will give enough cushion for our industry. (This is a) very good timing as exhibitors are now preparing for the furniture buying circuit,” said Salvio Valenzuela, executive director of the Chamber of Furniture Industries of the Philippines (CFIP).

He said the government can maintain this level to avoid abrupt strengthening of the peso in the future.

“(This will) protect price points set by exporters,” Valenzuela reasoned.

“There is of course a positive effect on our cash flow particularly if we don’t have to import much for our materials. But being a part of the SME (small and medium enterprise) group, this is not felt as much since we only exchange dollars for what we need usually for a weeks’ worth of operation,” said Cris Venzon, president of Philexport Region III.

Venzon said that apart from helping improve a company’s cash flow, buyers will be induced to buy more since they can purchase more for their greenback.

Cecille Ramos, chairman of the board of the Meycauayan Jewelry Industry Association Inc. (MJIA), noted that earnings are higher if exporters do not import raw materials.

“Our product is more competitive in the world market because labor cost is lower because there is less dollars to be converted to pesos to be spent for labor,” she said.

Ramos said more sales create and save jobs in the country.

Dennis Orlina, director of the Philippine Chamber of Handicraft Industries (PCHI), said the sector generally welcomes the weakening of the peso with a “crossed finger” attitude and hope that this does not have adverse effects on local prices.

The peso since last week has been weakening beyond 45 to a dollar for the first time since 2010. The local unit finished at 45.20 on Jan. 29.