PHILIPPINE STAR - January 13, 2008

Foreign investors flock to RP due to strong peso

The decline of the dollar against the peso has drawn foreign investors to the country seeking to pour their money in mining, power and information technology, a top official of the Bangko Sentral ng Pilipinas (BSP) said.

BSP Deputy Governor Diwa Guinigundo told reporters during the weekly Kapihan sa Sulo hotel in Quezon City that the entry of foreign investors is among the positive results of the continuing decline of the dollar against the peso.

"The market sentiment is in favor of the Philippines. Investments are coming," he said.

He said the strong peso is triggered by the weakening of the dollar resulting from a fiscal deficit brought by the costly invasion to Iraq which is bleeding the US economy.

Guinigundo said since the decline of the dollar is due to supply and demand, the government cannot do anything except to provide financial management advice to affected sectors, particularly the OFWs.

He said the BSP is conducting a series of lectures to help OFWs manage their financial resources earned from their employment abroad.

He said one advice to OFWs is to refrain from buying expensive cell phones and other electronic gadgets that will just put to waste their hard earned money.

Instead, OFWs are advised to invest in income generating projects that will expand the value of their money and help them cope with the daily needs of their families.