Palace: Strong peso already a gold medal

Even before the 23rd Southeast Asian Games formally opened yesterday, the Philippines had already won a "gold" on the economic front and is gearing up to be internationally competitive, Malacañang said yesterday.

"The strong peso is a gold medal earned by the Filipino people in our unceasing quest to implement fundamental reforms," Press Secretary Ignacio Bunye said in a statement. "The Arroyo administration is firmly resolved to sustain the economic momentum that will keep the Philippines on the leading edge of international competitiveness."

Bunye also called on the people and the country’s political leaders to unite and set aside political bickering "even for the duration of the games."

"As in all competitive endeavors, teamwork and focus are very important. We should only be one Team Philippines and let us concentrate on getting things done," he said.

The Palace issued the statement after peso registered last week a six-month high against the dollar. President Arroyo took credit for it, saying this was due to her unpopular fiscal reforms that increased investor confidence in the country.

Last week, Mrs. Arroyo said the improving economy brought about by her economic reform measures have helped reduce political instability and made Filipinos less prone to politicking and more hopeful for the country’s future.

She said her "economic plan and its tough, honest-to-goodness implementation overturned the political turmoil and opened the gates for surging confidence."

The President added that increased remittances from overseas Filipino workers also indicated increasing confidence in the country’s economic future.

National Treasurer Omar Cruz announced last week that the government may be able to reduce its projected yearend deficit from P180 billion to P140 billion due to revenues generated from savings and fiscal measures.

Bunye said the strong peso would help bring the country’s import costs down and also substantially reduce the government’s debt payments. He said the billions of pesos saved in interest payments could be channeled to more pro-poor services.

"Or alternatively, as suggested by members of the Filipino Hong Kong Chamber of Commerce whom (Mrs.) Arroyo met the other week, we can partially pre-terminate some of our foreign obligations," he said.

Such a move, according to Bunye, would send a very strong signal to the international financial community and could further strengthen the country’s position, resulting in the further reduction of debt service payments.

"Regardless of what course of action we eventually take, the fact alone that the peso is now considered as the darling currency in Asia is a testament to (the) political will and determination of (Mrs.) Arroyo," he said.

Bunye said Filipinos should not let division and strife get in the way of the country’s opportunity to move forward.

"Here at home, the SEA Games should ignite the passion of all Filipinos to rally behind our athletes and our nation and carry the torch of unity throughout the land by setting aside our differences and work towards the betterment of our society," he said.

Bunye said as history unfolds in the arena of regional sports and camaraderie, the SEA Games should mark another front of unity and cooperation in Southeast Asia.

"Our theme for this year’s event — One ASEAN, One Heritage — showcases the collective legacy of the region in terms of trade and investments, tourism, culture, regional security and other fields," he said. ASEAN refers to the Association of Southeast Asian Nations.

Bunye said games have a way of bringing people together, citing the "ping pong diplomacy" that helped thaw relations between the US and China and a football game between soldiers of two warring South American countries in the 1950s that led to the signing of a truce.

"If sports can bring together former enemies, it should be able to bring together former friends," he said, apparently alluding to Mrs. Arroyo’s former political allies, who have been calling for her resignation.