asia's high

The Philippine peso is Asia's 2007 best performing currency and so far for 2008 too. With a growth of almost 19%, it is considered Asia's strongest. It was once one of the worst, reaching as high to almost 60 pesos per dollar. But now, it has improved and has touch the 40-level per dollar with 40.55 pesos per dollar, its highest since 2000.

And the growth doesn't seem to stop. Analysts predict it will even strengthen to the 38 peso level against the dollar within this year and some experts even forecast the peso to reach the 35-level this year. Who would have thought the country would experience such boom in the economy. Who would have thought the peso would be stronger than the US dollar.

But despite peso's growth, not everyone is happy. The most affected are the more than 10 million OFW's who rely on foreign currency. If before, they could send $1000 or around Php 50,000... now the $1000 is just around Php 40,000 or Php 10,000 lower. If before, people are complaining why the peso is in the 50-level, now people are complaining why the peso is in the 40 or even 30-level.

It's actually a paradox. Those who complain that the peso has strengthened are those who make the peso strong. OFW's remit billions of pesos to the country and that is one factor why the Philippine peso is strong. But sadly they are also the one affected by the strength of peso. It's hard to be on their side. One would not know if one should be happy that the peso is strong or not.

One good effect of the strength of peso is the influx of foreign investments. Last year, the foreign investments outpaced domestic investments. And more are coming to the country... not to mention more tourist arrivals too. 2007 also marked an increased in tourist arrivals in the country from around 2.6 million tourist in 2006 to 3.09 million last year.

Of course, this all leads to the question: what about the common Filipinos? Has there been any change in their life? Has there been a difference due to the strength of peso? Apparently, one can not see it just yet. Most Filipinos will surely say they didn't feel the growth of the economy. Only the rich are experiencing it.

One can't know for certain the answers to the questions. But whether or not this strong peso affects some people negatively, it sure is something good in the long run. If it attracts more investments in the future, then it surely could help further improve the economy and hopefully the lives of many Filipinos. Hopefully, this strong peso could create more jobs and good jobs at that. The state of the economy now can help the country for its long term goals. But hopefully it also helps the short term needs of the Filipinos.