BPOs to benefit from weakening peso — Moody’s analyst
The Business Process Outsourcing (BPO) industry could benefit from the weakening Philippine peso despite the foreign exchange’s impact on inflation, said Moody’s Investor Service Sovereign Risk Group Senior Vice President Christian De Guzman.
In an interview with ANC, De Guzman stated that investors could see Philippine BPOs as more attractive as the peso trades lower than the dollar.
“The weaker peso does exacerbate inflation, so we need to keep that inflation targeting mandate in mind,” De Guzman told ANC.
“On the other part, there is a competitive aspect. The BPO services may look much more attractive in terms of pricing, so I think there’s [a] competitive angle here,” he added.
He said that remittances are poised to benefit from the higher value of the dollar compared to the local currency.
Meanwhile, UP School of Economics Professor Winne Monsod said the weaker meant a more competitive export sector. She added that this could also prompt Filipinos to prefer local goods over imported and more expensive items.
As of writing, the exchange rate of a dollar to peso is at P54.98.
