‘Mayabang kasi tayo!’

“Medyo mahirap sabihin ito, Senator, pero mayabang tayo eh… may consumption culture.”

This was how Facebook posts from The Daily Netizen and Bilyonaryo quoted BSP Governor Eli Remolona Jr. responding to a question of Sen. Erwin Tulfo during a Senate hearing on whether the peso can regain its value.

The Netizen Facebook post explained Gov. Remolona’s point in Tagalog: “masyado tayong consumer-oriented. Gusto nating gumastos, bumili at mag-consume, pero bilang bansa, kulang ang savings at kulang din ang paggawa ng mas maraming produkto para i-export*.”

Gov Eli pointed out that we are too dependent on OFWs and BPOs as our major sources for foreign currency.

“Kasi pag binilang mo yung remittances at tsaka yung BPO, ang diperensya ng pumapasok na pera tas lumalabas, ang tawag dun, current account. Matagal ng negative ang ating current account.”

On the senator’s question about the exchange rate, The Governor explained that it is not possible for the BSP to just fix or set the exchange rate. “Mauubusan tayo ng reserves. Mauubusan tayo ng dollars.”

He told the senators that the only thing BSP can do is to manage any extreme volatility or a serious weakening as part of its mandate to control inflation.

“If the peso weakens very sharply, mas malakas ‘yung impact ng exchange rate sa inflation,” the BSP Governor explained.

When asked why is it difficult to stop the depreciation of the peso, the Governor replied that it is simple: “Kulang na kulang ang exports natin… pwedeng pigilan para bumagal, pero hindi kayang i-fix. Hindi kayang 60 pesos, ganoon lang.”

In other words, mas marami tayong kailangang bilhin mula sa ibang bansa, kaya mas malaki rin ang pangangailangan natin sa dolyar.

And this was how the Pax Silica project was mentioned as something that may help strengthen our export numbers.

“Gumawa tayo ng paraan na palakasin ang exports. Halimbawa, ‘yung Pax Silica, maaaring makatulong sa exports ‘yan,” Remolona reportedly said.

The Netizen emphasized that the Governor did not say Pax Silica is a magic solution. “Pero ayon sa economic logic na inilatag ng BSP governor, export-oriented investments could be part of the long-term solution sa cycle ng weak peso, expensive imports at inflation.”

The Daily Netizen explained: “Kung mas marami tayong high-value products na nae-export, mas maraming dolyar ang pumapasok sa bansa. Kapag nabawasan ang pressure sa dollar demand at lumakas ang external position ng Pilipinas, may potential na mas maging resilient ang piso.”

I found the Netizen’s report of the Governor’s explanation of the intricacies of the peso’s exchange rate, inflation and the balance of trade refreshing. I haven’t seen much explanation of these economic matters in Tagalog in a way that ordinary Filipinos can understand.

The Governor was not being elitist or victim-bashing as some leftist observers say. He was being straight forward in describing our macro situation.

Indeed, it was refreshing to hear the Governor explain economic concepts in Tagalog. It’s unexpected because he lived most of his professional life working on high level economic concepts abroad.

The Governor and other BSP officials should do more to reach out to the masa who benefit or suffer from the consequences of decisions that they make.

The one big and alienating problem with our technocrats is their propensity to talk over the heads of everyone who does not have a PhD in economics. The masa is more than reasonable if economic decisions are explained to them clearly and without the usual condescension.

Going back to the supposed quip about our being mayabang… that was also the point I raised in a previous column about how we like to build barriers to foreign investments because we think we don’t need them.

We are content with OFW remittances and BPO earnings. And from the arguments against Pax Silica, it seems we are saying that we can live without high tech investments.

But we have serious problems ahead. There is a clear declining growth rate trend for OFW remittances, and the Philippine economy cannot depend on this forex source indefinitely.

While absolute remittance figures continue to hit record highs annually, a massive $35.63 billion in 2025, its growth rate has decelerated.

Two decades ago, annual remittance growth frequently hit double digits. As of August 2026, growth has drastically slowed down, with economic analysts forecasting a growth rate of just 2.2 to 3.0 percent due to global headwinds, a deceleration in deployment, and geopolitical friction in the Middle East.

Remittances peaked as an economic driver in 2005, accounting for 12.8 percent of our GDP. Today, even if total cash inflows are larger, their share has drifted down to roughly 8.7 percent to 10 percent of GDP.

As for the BPO sector, it remains a dependable pillar of the economy but its role is shifting from a volume-driven job engine to a value-driven revenue generator.

We are starting to see jobless revenue growth. BPO companies are increasingly generating higher profits through AI efficiencies without needing to hire a proportional number of new warm bodies.

And because the jobs now require more knowledge processing, a severe shortage of qualified domestic talent is the ultimate constraint on the Philippine BPO industry.

Global education rankings (like PISA) highlight deep deficiencies in math, science and reading comprehension among younger Filipinos. These are the foundational skills required to collaborate with AI tools.

As for FDI in manufacturing, the Philippines is not turning the corner to compete with Vietnam. In fact, the competitive gap between the two nations is widening.

So, expect the Philippines to continue importing substantially more than it exports for the foreseeable future.

As of August 2026, data from the Philippine Statistics Authority shows that the country’s merchandise trade deficit ballooned by 29.2 percent to a massive $37.34 billion for the first seven months of 2026 (up from $28.91 billion in the same period last year).

Ayan… kasi mayabang. At laging binoboto yung bobo na, corrupt pa. Tuloy tuloy tayong mag durusa.

Boo Chanco’s email address is [email protected]. Follow him on X @boochanco