DOLE mulls fixed dollar rate for OFWs

Overseas Filipino workers (OFWs) may soon get a much-awaited reprieve from the weakening value of the US dollar.

Labor Secretary Arturo Brion yesterday said the government is now finalizing negotiations for the granting of a fixed peso-dollar exchange rate for Filipinos working abroad.

Brion said the Department of Labor and Employment and the Development Bank of the Philippines (DBP) are discussing a possible six-month “protection” from the dollar depreciation.

“The proposal is that OFWs who would deposit their salary in the DBP would be given a six-month guarantee which means OFWs would be protected from the falling dollar for the next six months,” Brion explained.

He noted that the OFWs would be paying a premium, but the amount is still under discussion.

The labor chief added that he would soon meet with DBP chief Patricia Sto. Tomas to discuss the proposal.

But Brion said the first to benefit from the proposal are the sea-based overseas workers since their group is “more compact” compared to land-based workers.

Earlier, Commission on Filipinos Overseas (CFO) chairman Dante Ang revealed that government and DBP representatives are trying to come out with an insurance system that would cushion the impact of the dollar depreciation, but will also benefit workers in case of devaluation.

“The system we are working on is actually a win-win solution because OFWs would be protected from peso appreciation but also benefit from peso depreciation,” Ang pointed out.

The government is also undertaking efforts to lower the remittance fee to $2 or lower to lessen the impact of the weakening dollar on OFWs and their families.