Economist says peso to slide to P60 to a dollar in 2007

Today’s SunStar Pampanga reports:

CLARK ECOZONE — The local currency is expected to slide down to P61.25 to a dollar in 2007, economist Bernardo Villegas forecast the other day.

However, this should not be a cause of alarm, he said, as the inflation rate for that year would also be arrested to an average of 4.3 percent.

Speaking before members of the Pampanga Chamber of Commerce and Industry, Inc. (PamCham), Villegas, Senior Vice President of the University of Asia and the Pacific (UA&P), presented the strategic plan for Central Luzon, underscoring the need for the Philippines to familiarize itself of the “engines of growth” in the global community.

In his presentation, Villegas said the peso may end up at P55.6 to a dollar by the end of 2005. At the first quarter of the year, the local currency faired at about P55 to the US dollar, which presently shows up to be the strongest currency in the world.

In 2006, he said, a dollar would cost P56.5.

Considering that it is currently September 2005, and today’s Peso is at around P56.3:$1, perhaps the slide will be even quicker than predicted.