MikeLigalig.com

Manila Bulletin – Sun, Aug 19, 2012


MANILA, Philippines - The business process outsourcing, (BPO), the country's sunniest industry, is slowly waning its competitive edge to India largely due to the appreciation of the peso against the US dollar compared to India's rupee, which has been devalued by as much as 25 percent, an economist said.

Economist Raul V. Fabella issued this warning during the ''Competitive Currency Forum'' organized by the Philippine Exporters Confederation (PhilExport) on Friday as exporters tackled what they believed as the ''oppressive'' foreign exchange rate policy of the Bangko Sentral ng Pilipinas.

''The foreign exchange has a very important impact on our competitor India in the BPO space,'' Fabella said. India used to be the global hub of BPO firms after it was by the Philippines, which is now the clear leader especially in the voice business.

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The BPO industry is not the only affected export sector. Export leaders found themselves helpless in stopping the continued appreciation of the Philippine peso to its strongest in five years when it hit P41.68 billion the US dollar in the open market last month.

''The problem is bigger than the exports,'' said Sergio R. Ortiz-Luis Jr., president of PhilExport.

In one of the dialogues with top government officials including the panning chief and members of the Monetary Board, the policy making body of the BSP, it was revealed that had it not for the BSP intervention in the foreign exchange market, the peso would have reached P38 to the dollar.

''The BSP has admitted it has been losing money buying and keeping excess dollars entering the country to stem the rapid appreciation of the peso. It the past couple of years alone, it has lost P107 billion,'' Ortiz-Luis said.

Ortiz-Luis suggested for the whole economy to truly benefit from the strong peso, the BSP continue to pay in advance the government's billions of dollars in indebtedness and further relax the limits on the dollar purchases of private banks to ease the piling up of dollar remittances and export proceeds in the open market which is driving the peso even stronger.

The country's exports are expected to grow between 8 to 10 percent in 2012 from last year, but with the peso getting stronger exporters are starting to recalculate their assumptions.

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BPO is now the most desired industry in the world. It is very popular since people in India are working here and earning huge amount in dollars.


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The thing called as the business process outsourcing or BPO, the country's brightest business, is slowly going down as being presented in the figures here. 

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Exchange rate policy "competitive currency Forum last Friday by the organization of the Philippine Exporters Confederation (PhilExport) exporters solves the" oppression "they believe of the Pilipinas this warning.

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