The Philippine Peso Exchange Rate with US Dollar had now reached a strong P43.25 Philippine Pesos. But is it strong? Although for some Filipinos, the sudden drop of dollar is a sign that the Philippine Peso had started to get stronger, many experts have said that this sudden drop can produce adverse effects for the Philippine’s economy. This is because of these reasons: Foreign Companies in the Philippines Many of today’s large businesses in the Philippines are foreign owned, particularly by Americans. Popular examples are call center companies and agencies. Because of the sudden drop of the US Dollar, many foreign businesses in the Philippines have been largely affected due to the fact that their services became even more expensive for the US to afford, which is why many of these businesses had closed down which left many Filipinos jobless and unemployed. Effects in Outsourcing In addition to its effects in foreign businesses, many outsourcing companies in the Philippines had also been affected by the sudden drop of US Dollar vs. the Philippine Peso. This is because services in the Philippines became expensive for their American clients to afford. Some businesses affected by this are IT services and call center services. OFWs But the ones that were really affected by the sudden rise of Philippine Peso exchange rate with US Dollar are OFWs or Overseas Filipino Workers. This is because the remittances that these OFWs send to their loved ones in the Philippines from the US became weaker, which resulted in lower exchange rates with the Philippine Peso. Because of this, many OFWs now chose to go back and work in the Philippines or to find work in other well-paying countries. Reasons why the US Dollar Dropped One of the reason that many experts have said as to sudden drop of the US Dollar is because the US government pushed to make more money, which in turn led to the drop of the US Dollar in the World Market. This is an effort to reduce importation of products and to increase exportation of their products. In addition to that, US President Barrack Obama pushed to minimize the use of outsourcing, in which many large businesses have outsourced many of their services in countries which can offer cheaper services and manpower, such as in the Philippines. This is to ensure that all unemployed Americans can be given a job rather than companies outsourcing their services in other countries and hiring other nationals and this are all the Daily News Philippines
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