Philippines peso drops to 'most favourable' rate for OFWs since mid-April

Dubai: Filipino expats in the UAE will be sitting pretty with the peso now dropping to its lowest level since mid-April.

The peso is at 15.5 to one dirham, and easily the most favourable exchange rate for OFWs in the UAE and other Gulf markets. “Even by close of the market yesterday, all signs were pointing to the peso weakening and that it would end up at levels that UAE Filipino expats will likely consider,” said Neelesh Gopalan, Treasury Manager at a Dubai fintech.

"So, you had the peso closing at 15.50 level last evening and now opening at 15.54.”

For OFWs in Saudi Arabia and Qatar, the exchange rate for the peso in local currencies are at 15.28 and 15.72, respectively.

Already, Filipino expats in the UAE have been getting onto banking and exchange house apps to make full use of peso’s drop against dirham and dollar. (Typical fees are around Dh10.50 per remittance on some of the popular platforms. At exchange houses, the fees would be over Dh20 a transaction.)

This week, there have been media reports from the Philippines about the country's central bank chief has been quoted as saying it makes no sense to intervene to prop up the peso.

Over the last 30 days, the peso's been steady at the 15/15.1 mark against the dirham, which is why there has been so much of cheer among OFWs in the UAE about the latest drop.

"If only this level sustains until my next salary transfer, that would be the best outcome," said one OFW. "Today's drop has come to late for me to be sending money home."