BSP won't back 'special' forex rate for OFWs

The Bangko Sentral ng Pilipinas is not likely to support the online petition started by overseas Filipino workers based in Jeddah calling for a “special" foreign exchange rate for them. A group of OFWs, V-Team – Advocacy and Community Service, has launched an online campaign addressed to President Gloria Macapagal Arroyo, that if successful, will secure for “legitimate" OFWS a fixed 10-percent premium above the market’s peso-dollar exchange rate, or a flat rate of P50:$1. “The BSP’s policy is to essentially let the market determine the exchange rate which has benefited from foreign exchange inflows," BSP Gov. Amado M. Tetangco Jr told GMANews.TV in a text message. This means the central bank is not likely to interfere with the peso-dollar exchange rate. Tetangco said that the BSP is aware that the peso’s strength has adversely affected both OFWS and their families, and even the export industry. He said that instead of interfering with the exchange rate, the government has instead set up measures to help sectors affected by the peso’s run-up against the dollar. ‘We are aware that the movements in the rate affect different sectors of the economy differently. We have implemented measures to smoothen sharp movements in the rate," Tetangco said. “In our analysis, excessive volatility in the rate is more undesirable to a broader base of the economy than the absolute level of the exchange rate," he added. The national government has created a $1-billion stabilization fund through the Development Bank of the Philippines to help the export industry cope with the steady rise of the peso. No such measure has been put in place for OFWs. Leaders of the V-Team – Advocacy and Community Service said that should not be the case. OFWs have been considered as one of the main driving forces of the Philippine economy. Remittances from overseas Filipino workers reached P12.7 billion in 2006, their all-time highest level. "Unlike exporter of goods; the government spends only very minimal cost on us, if at all. If government can shell out some funds to benefit exporter of goods, surely they can do the same for more than 8.5 million OFWs and nearly 25 million family members back home," V-Team said in its petition. "Our life abroad and the life of our families back home gets harder with the continuing rise of the peso. Our families have to manage smaller budget against increased prices and we have to work longer hours and cut expenses to be able to remit more dollars. Our common goal for a shorter timeline of working away from loved ones has no doubt been lengthened. With the peso hovering around P44-P45 a dollar, it will now take us longer to achieve our plans of saving to build livelihood, if not impossible," the petition continued. Joseph Espiritu, one of the senior leaders of V-Team, said those who have access to the Internet may add their signatures at www.petition.patnubay.com. The petition can also be downloaded from the same site. "Ito na ang pagkakataon nating magkaisa para pakinggan ng mga nasa poder sa Maynila ang boses natin (Here's a good chance for us to speak as one so that the powers-that-be in Manila will listen to us)," Ronnie Abeto of the V-Team said. - GMANews.TV