Dubai: It’s payday and Filipino expatriates are rejoicing due to the weakening peso.
The Philippine peso hit a seven-year low at 13.16 per dirhams on Monday and Filipinos are cashing in on their currency. Wednesday’s rate was at 13.14 pesos to Dh1.
Many said their families will directly benefit as their fixed monthly remittance in dirhams will have a slightly bigger value back home.
“A weakening peso is always favourable to overseas Filipino workers (OFWs) because our families in the Philippines will receive more money due to the exchange rate. There may be a negative impact on the economy, but to our families, they won’t feel the immediate impact right away,” Danilo Bunag, an IT consultant, told Gulf News.
Bunag said the exchange rate when he sent money in August was 12.56 pesos to Dh1. But it hit the 13-peso mark this month. He twice remitted money earlier this week due to a family emergency and the rates really helped.
“On those two occasions, the first rate was 13.06 pesos to Dh1 and 13.13 pesos to Dh1. That already gave 1,500-peso difference. In the Philippines, that’s a huge amount,” he added.
Bunag said it would benefit Filipinos more if they have savings and remit a huge sum to take advantage of the high exchange rate. This is what J.B., an administrative assistant, plans to do.
J.B. said she plans to send an additional 10,000 pesos as savings to her family back home this month.
“We usually allot 30,000 pesos every month and that’s around Dh2,400. We can send extra this month for savings,” J.B., a mother of three, said.
Sudhesh Giriyan, COO, Xpress Money, said the uncertainty about the US Fed’s next policy action may well be the cause of the weakening peso as in the case with other regional currencies.
“Additionally, other external factors like economic developments in China, the European Union and Japan and expectations of a lower current account surplus are intensifying the peso’s weakness,” Giriyan said.
Giriyan said with the windfall of the peso and salaries being dispersed this week, it is the best time to send money. And this trend is expected to continue.
“There are chances that the peso could cross the 14 mark within this year. However, one has to wait and watch to what levels the peso will further depreciate to,” Giriyan said.
J.B. said if the peso reached 14 to a Dh1 this year, it would be a great Christmas gift.
John Galando, a father of four, couldn’t agree more.
“We will be sending the same amount in dirhams and this would probably give us a windfall of 1,500 to 2,000 pesos. But if the exchange rate reaches 14, that’s when we will really see a big difference,” the QA-QC engineer said.
For Joy, a nurse who is going on vacation on Thursday, her take-home money just increased by 40 per cent.
Roxanne Cabanag, 30, an accountant, on the other hand, said she would have extra money here in Dubai as she wouldn’t have to send the same amount in dirhams to the Philippines.
“It’s really helpful because I’ll have extra money for my daily needs here. Truly, every dirham counts,” she said.
