Cebu exporters appeal for quick actions to save them from rampaging peso
Cebu exporters have joined the widening ranks of dollar earners in asking the government to take decisive actions to rein in a strengthening peso before more export enterprises go belly up.
The appeal was received by the Export Development Council (EDC) this week as the peso stood strong at an average of P44.80 to the US dollar from P48 to the dollar at the start of the year. It was signed by Venus Genson, PHILEXPORT-Cebu president and seven other industry associations in Central Visayas.
Next to Metro-Manila, Cebu is the second biggest exporting region in the country.
"While government sees the recent developments on the peso positively, the export industry, which is one of the two major economic drivers (besides OFWs), continues to struggle," the Cebu exporters pointed out.
They noted that the export industry contributed roughly US$50 billion in earnings to the economy in 2008 before it suffered a 21.7 percent drop to $38.3 billion last year due to the recession.
They warned that if the government continues to keep its "hands off" policy on the strong peso crisis, the country may end up debilitated by the "Dutch Disease"leads to deflation, recession and de-industrialization.
"Our surviving exporters are still trying to cope with the effects of the global recession while there are still no clear sign of a sustainable market recovery. The additional pressure brought to bear on the industry by the appreciating peso could put more exporters out of business," the position paper warned.
They lined up five specific areas where the government could help them survive the new crisis.
First is for the Department of Trade and Industry (DTI) not to divert the remaining P800 million out of the P 1 billio0n export support (ESF) fund to other uses. They were, however, too late as trade senior Undersecretary Thomas Aquino admitted to reporters the other day that the export "rescue" fund is no longer available.
Second demand is for the Development Bank of the Philippines to aggressively promote the use of the P1 billion foreign exchange hedge fund for exporters.
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