1 USD:58.50 PhP, an all-time-low. The peso loses its value and is projected to continue hitting bottom against the U.S. dollar in the next few months until early next year. A great favor for some, but must be alarming for the majority. For families who receive money from OFWs earning dollars, the depreciating peso means a higher exchange. The same is true for exporters, earning more pesos for the same amount of dollars. In other words, these sectors get to enjoy the other edge of the sword. The Bangko Sentral ng Pilipinas, however, emphasizes that the current forex must be seen in such a way that the U.S. dollar, as the reserve currency, is strengthening against other currencies aside from the peso. This is because of higher interest rates in the U.S. as a means of combating inflation, thus the peso must not be described as it is weakening. Nevertheless, it is still something to firmly address, especially for those at the other edge– the common Juans and Marias and immediately also for remittance beneficiaries who experience a short-term advantage of higher exchange. This is because of an offset in the inflationary effects of the depreciating peso.
The Philippines is an import-dependent country, and a strengthening dollar would mean a great disadvantage. There will be an increase in import costs stimulating inflation, thus higher prices even of basic commodities burdening the common consumers. For instance, our country, which is a top fuel importer, must expect a long road for the already skyrocketing prices of fuel. We are all aware of how it has been for most of us. GlowCorp alone has experienced great inevitable changes in its operations, particularly in sourcing supplies and raw materials as well as in distributing its products to consumers such as to institutional warehouses nationwide. With this, the forex situation on top of many other economic and agricultural issues in our country can be considered a threat. As a matter of fact, many agricultural groups and stakeholders urge the government to lessen the country’s agricultural imports and focus on policy-making in terms of a more developed and competitive food system to support our local farmers and offer accessible and affordable commodities for Filipinos.
Threats are part of any business and are mostly inevitable as they come from the external environment that the business belongs to. A thorough situational assessment is necessary to address these threats considering the internal business environment in terms of strengths and even weaknesses, as well as opportunities from outside of the business. For the case of GlowCorp, the economic issues that the country is facing today are indeed a challenge especially right after its recovery from the effects of the COVID-19 pandemic. However, with its commitment to continuously support over 6,500 farming households, GlowCorp strategizes through its established name in the market as well as through opportunities to offer accessible organic and healthy products. The organization is working on more marketing negotiations as an impactful way to help the marginalized who mostly are affected by economic changes such as the dollar-peso exchange.