Motolite: Peso rise may force out of business

[uls]

Isn't this caused by the inflows of OFW money, too much dollar in the system? Even OFW complained before that their dollar has shrunk against the peso.

strong dollar inflow (OFW remittances, BPO earnings, export earnings, foreign investment)

there's a lot of dollars coming in kaya humihina ang dollar against the peso

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if the govt wants to control peso strength the BSP should set a price ceiling (like P45 to $1)

BSP will print pesos to buy dollars

same thing what the Swiss National Bank does to keep their currency from strengthening against the euro. they set the price ceiling at 1.20

[yebo]

the government should take advantage of the high peso/low dollar by paying its external debt. this way they save money by being able to buy dollars at a low rate vis-a-vis the peso (so more $ loans paid for less P, less taxes). by doing so they will also create a demand for the dollar, increasing the exchange rate.

kaso lang nga pag may nakita silang excess sa budget (since money allocated for servicing foreign loans will go down due to the exchange rate) they will not think of paying the loan in advance. what they will do is look for ways to spend the money.