EDITORIAL - An economic tsunami

Yesterday the peso hit an all-time low of 46.61 to the dollar, worse than the worst when the financial crisis struck Asia three years ago. The stock market followed, continuing its plunge. Meanwhile, oil companies are planning more increases in pump prices that may amount to an additional P2 per liter before the year ends. As for those pinning their hopes on dollar remittances from overseas Filipino workers, sorry, the OFWs also want higher interest on their earnings and are keeping their greenbacks abroad. This Monday transport fares are going up by P1, which is likely to push consumer prices up. Whatever the results of the military campaign in Sulu, it’s going to be a bleak Christmas.

Obviously, the recovery of 12 Christian preachers led by Wilde Almeda the other day did nothing to stop the peso’s slide. What has happened? Currencies are falling across Asia even as the dollar grows stronger. Oil prices are soaring worldwide. These factors are beyond the government’s control, and Filipinos must learn to cope with this latest economic tsunami. Private individuals can reduce fuel and electricity consumption, buy Filipino and defer trips that will further drain dollar reserves. The government must do the same. It must lead by example by putting to pasture the gas-guzzling vehicles of top officials, and by launching an honest-to-goodness belt-tightening program that should include the suspension of fo-reign trips by public servants.

But this problem is not just an international or regional phenomenon. The Philippine currency and stock market are among the worst performers in this part of the world. This is particularly frustrating for Filipinos since the country was among the least affected by the currency crisis that started in 1997, and was predicted to be among the first to recover. Now the country is being left behind by its neighbors including Thailand where the original currency crunch started.

Analysts are blaming poor exports and a crisis of investor confidence for the peso’s free fall. The crisis in Mindanao did not help the situation. These problems won’t be solved merely by belt-tightening. It needs decisive steering toward a clear goal. It needs firm leadership before the nation careens toward disaster.