Weak peso

At this time, the peso to dollar exchange rate is 56.98 to one US dollar. We have not seen
the Philippine peso perform this way. Stronger US dollar, rising imports, interest rate hikes, and
expensive global oil prices are some of the reasons for the Philippine peso to weaken. Weak peso
will make rising inflation as a feature of the economy in 2022 according to an expert. Inflation is
the rate of increase in prices over a given period of time and can increase in the cost of living in a
country. Inflation can cause the purchasing power of a currency to decline.

To those who have an OFW family members will have an increase in remittance value and they
got to enjoy higher purchasing power. Higher purchasing power is good for our economy. We
also sell our products in the international market for a lower price, this in turn, can improve
employment and boost productions. On the other hand, when the peso is weak commodities like
coals and oils become more expensive leading for trade goods to become more expensive.

We Filipinos should keep on watching and always pay attention to the exchange rate of
currencies. If we are aware of what is going on in our economy, we are able to make better
decisions about trading, investments, and other purchases.