CEBU CITY, Cebu, Philippines – Cebu exporters are renewing calls for a more stable foreign exchange rate so as to give room for industry players to expand amid stiff international market conditions and economic setbacks currently challenging some of the world’s major economies.

“The volatility of the exchange rate between the US dollar and the Philippine peso makes it difficult for us to expand operations,” said Jenifer Cruz, past president of the Gifts, Toys and Housewares Foundation-Cebu (Cebu-GTH). “In short, all dollar earners from exporters to business process outsourcing (BPO) companies and overseas Filipino workers are suffering.”

Cruz, who owns 33 Point 3 Export Inc., said Cebu exporters continue to seek intervention by the Bangko Sentral ng Pilipinas (BSP) to implement measures in preventing the peso from further appreciating.

The Philippine Dealing and Exchange Corporation has reported that as of Tuesday’s closing rate, the peso stood at P42.97 to the US dollar, even as the weighted average rate stood at P42.816.

According to Cruz, while a strong peso renders imported goods cheaper and tempers hikes in consumer prices, such scenario, however causes Philippine exports to become more expensive and less competitive in the global market.

She underlined that “stabilizing the exchange rate is one effective solution for us to expand operations. The Central Bank of Japan has control over their yen, so, why can’t we have control over the peso?”

Along with the volatility in foreign exchange rates, Cruz said the export sector continues to lose many of its skilled workers to Cebu’s booming industries like tourism, construction and BPOs, consequently resulting to an adverse impact on the industry’s production capacity.

She also said the recent P20 minimum wage increase could affect the competitiveness of export products.

“An additional P20 increase in the minimum wage will mean an increase of three to four percent on the product’s price,” she noted.

Earlier, two leading Cebu business organizations also sought a reassessment of existing monetary policies affecting the movement of foreign exchange.

Top Cebu Business Club (CBC) and Mandaue Chamber of Commerce and Industry (MCCI) officials are urging the local business sector to “air out their concerns” on the strengthening of the peso against the US dollar for fears that this will adversely affect the economy, particularly sectors involved in exports, business process outsourcing and tourism.