CEBU CITY – In order to remain competitive in the world market, exporters in Cebu are hoping that the US dollar-Philippine peso foreign exchange (forex) rate will remain at the current level.

“If the (forex) rate stays at the P46 level, exporters can ride on the recovery track of the global market,” said Jenifer Cruz, past President of the Gifts, Toys and Houseware-Cebu (GTH-Cebu) export organization.

But while Cruz admits that the forex rate cannot be pegged at a certain desired rate, he said exporters here are hoping that Government will help stabilize the peso to the US dollar exchange rate. “We understand that we cannot demand for abrupt changes of the forex because of the law of supply and demand,” he added.

Cebuano economist Ruben Almendras said that if the peso stabilizes at the P46 level versus the greenbuck, this could provide positive impact on the Philippines since its economy is driven mostly by remittances from overseas Filipino workers, tourism, business process outsourcing and exports.
A previous report showed that the peso exchange rate stood at P5.90 to the US dollar, which was the closing rate last Friday at the Philippine Dealing and Exchange Corp.

“A P46-to-the dollar rate should be good for the economy,” Almendras stressed.

Cruz meanwhile remarked that at present, local exporters are busying themselves on how to remain competitive as world markets are now starting to recover.

“The concern for the forex is still there and everyone is on their toes when it is volatile. We are happy with the current level. But now, exporters are more concerned on how to market their products in emerging countries and keep up with the demand of buyers,” he said.

Cruz said that after the global recession, the market trend and buying pattern of markets overseas have significantly changed.

He said earlier that foreign buyers are now careful not to order in huge quantities. “When they buy new products, they first order in small quantities. If the product sells well in the market, they immediately order in bigger amounts, but we have to ship these in 30 to 60 days and no longer at a 120-day grace period,” Cruz explained.