Weak peso to benefit BPO sector
The depreciation of the peso will benefit the country’s business process outsourcing (BPO) sector, according to Finance Secretary Carlos G. Dominguez III. He said the one-peso depreciation means there is P50bn more of potential demand, which is beneficial to many. This was supported by Budget Secretary Benjamin Diokno, who said that a one-peso depreciation would yield a net gain of P7.2bn for the state coffers as revenues will increase by P9.2bn. As the peso depreciates, BPO workers earning in dollar will have more money in their pockets. The peso breached the P50 to USD1 level in February, the weakest in 10 years, depressed by prospects of higher interest rates in the US. It closed last week at P49.76 to USD1.
