InterAksyon.com means BUSINESS
MANILA - A number of exporters are refusing to accept orders as the peso hit a two-year high vis-a-vis the US dollar, the Philippine Exporters Confederation Inc. said on Monday.
"Bihira na ang exporters na tumatanggap ng order," PhilExport president Sergio Ortiz-Luis Jr. told InterAksyon.com.
Orders for the holiday season are shipped out during the third quarter of the year, which is when exports are at their strongest.
But at an exchange rate of P42:$1, small- and medium-enterprise exporters, which comprise 98 percent of the total, can no longer compete abroad.
Semiconductor makers and business process outsourcing firms can tolerate an exchange rate of P40 to P41 for every dollar, Ortiz-Luis said.
Beyond that level, the country's leading merchandise and service export sectors would also face problems, he said.
"There is fear that the peso will further strengthen" to the P40 to a dollar level before the year ends, Ortiz-Luis said.
He said exporters' appeal for government to tame the strong peso has so far gone unheeded.
Although hurt by the exchange rate, exporters are sticking to their 10-percent growth target for this year, Ortiz-Luis said, adding that they are "hoping that the situation would improve."
But if the problem persists, Philexport will review its projection, he said.
InterAksyon.com means BUSINESS
'The Philippines has arrived', executive says as Rolls Royce appoints distributor in Manila
Who has accounts in offshore tax havens? Investigative journos post database online
