LETTERS FROM THE AGNO

Has your peso become stronger?
March Fianza

Headlines that talk about a stronger peso bring new hope for Filipinos. Unluckily for the penniless, they still have to look for the money before they feel the effects of the declaration, as compared to those who have the peso to spend. Still, whether one is moneyed or penniless, he feels insulted by the statement.

Quite mysteriously, an economic growth is declared at a time when four consecutive increases in gas prices take effect immediately after the election. The pronouncement of a strong peso seems artificial since its effects are not felt – not even by the rich.

With the government’s economists believing the country has a stronger economy, I am beginning to suspect they spend a currency that is different from us. Their peso seems to buy more while my peso buys less.

Once in a while I do the marketing. I did so the other day for curiosity and to see if the effect of Ate Gloria’s strong peso has trickled down. I found out that the prices have not gone up as compared to the last time I was in the market, but neither has my peso become stronger because it is unable to buy more.

In search of more proof, one need buy a thing. Simply ask a sari-sari store owner about prices of groceries, at the same time be ready to find out the truth. The salesladies too can attest to the truth. They will tell you that their prices have slightly gone up a few centavos but their salaries have not. They will tell you further that they change their shelf prices everyday – a manifestation of a weaker peso.

The controversy is in the vegetable market in the wholesale trading -- where the farmer can not dictate gate prices to middlemen buyers for fear his perishable produce might just rot in the truck if this is not sold. That explains why vegetable prices remain stable, slightly rising and falling at three to five percent. In this scenario, the farmer does not see a stronger peso.

I buy gasoline for my Beetle every two to three days or every 15 kilometers. Days before election in May, my regular gas was pegged at P36.14 per liter. A few days after election, it shot up to P37.14 or one peso higher. One and a half weeks later, fuel prices again went up at fifty centavos higher.

In the second week of June, price per liter for regular gas rose to a high of P38.14 and was up again this week at P38.63 per liter. That comes up to a total of P2.49 increase in regular gas price in 30 days. That is in the nearby town of La Trinidad . In Baguio , the price is at P39.82 per liter. Maybe by the time this article is printed, the fifth gas price increase has taken effect. What economic growth or strong peso are they talking about?

Contrary to Gloria’s economists, news reports said of an increase in the take home pay of government workers. The contrast is shown in the fact that even with the economists’ declarations, government workers complain of having to tighten their budget. And this may be loosened with an increase in salaries. Again, this does not portray a stronger peso. It simply means that a government worker will be able to buy more goods because of the recent increase in take home money.

Forgive a dirty mind but I am starting to doubt the basis for the economists’ declaration of a stronger peso. They may be up to something that we ordinary Filipinos do not see. If so, then they may not be called economists. They may be better branded as rumor-mongers. The truth is that no Filipino would dare say his peso has bought more than what he bought yesterday, not even tomorrow. mf