Dubai: Filipino expats in the UAE are facing a higher peso rate cycle ahead of their next remittances home, with the Philippines currency firming up to 15.34 against the dirham this morning. This is compared to the 15.41-15.44 range that the peso had been trading in for the better part of last week.
For the lowest point of the peso this year, one has to go back to January 10, when it was 16.06.
“The peso’s strength has to do with the continued dollar weakness in recent days,” said an FX analyst in Dubai. “It’s the same story being repeated by most major currencies vis-à-vis where they are now compared to their levels at the start of the year and in February.”
Impact on OFW families
In theory, a stronger local currency could mean lower Overseas Filipino Workers (OFW) remittances in peso terms, as sending money home will find that their earnings convert to fewer pesos, affecting families who rely on remittances.
OFW families may feel the pinch, especially those who rely heavily on remittances for basic needs, education, or healthcare.
It could also exert some pressure on OFWs, as some may feel the need to send more dollars to compensate for the lower peso value, which can strain their finances abroad.
