Atty. Rivera Slams Critics for Blaming Peso's Downward Trends to Pres. Duterte


Veteran lawyer and a prominent Pro-Duterte supporter on social media Atty. Bruce Rivera slams the critics of Pres. Rody Duterte for blaming his admin as the one responsible for the downward trends of the Philippine Peso.


According to Atty. Rivera, the exchange rate of P50 is to $1 should not be blame to Pres. Duterte. One of the better arguments made by some Anti-Duterte people is the rise of exchange rate since the start of 2016, however, they should not be quick to point a finger on a man who not even finished a year of his term as President.

Atty. Rivera noted that foreign exchange is influenced by six important factors which are enumerated below by the San Beda lawyer.

For the past few months since Pres. Duterte assumed office as the country's chief executive, Anti-Duterte forces keeps on attacking the President's policy and pinpointing the downward trends of the Philippine currency which they noted was affected by the President's war on drugs campaign.

Here's the Complete Statement of Atty. Bruce Rivera:

THE EXCHANGE RATE IS PHP50 TO US$1: IS IT DUTERTE'S FAULT?

Critics are quick to blame the decrease in the foreign exchange value of the Philippine Peso on PRRD and that had been one of their better argument because indeed, the exchange rate has steadily risen since the start of 2016. However, they should not be quick to point a finger on a man who not even finished a year of his term.

Foreign exchange is influenced by six important factors and in order to fully understand it, let us discuss each factor and see if Duterte has something to do with it.

First is government intervention in subsidizing the exchange. Clearly, the policies of the BSP has not changed over the years on the forex. Unlike richer countries who manipulate and stabilize its currency, the Philippines cannot afford that luxury.

Second, inflation rates pertain to the sustained increase in the price levels of goods and services over a period of time. The BSP considers 3% inflation as within the comfortable level and the present 2.7% inflation has no little or no effect on the forex.

Third, are the interest rates are the benchmark for overnight borrowing which is pegged at 3% as well. This also did not change starting from the GMA administration. As such, interest rates have little or no effect on the forex.

Fourth, the current account deficit talks about the spending of government. In the present situation, Duterte took office in the middle of the year with merely 10% of the national budget remaining. Worst, to boost its credit rating, the Aquino administration did not spend much for infrastructure so it will have funds for other purposes. 

As a result, the Duterte administration will have to spend more on infrastructure and other capital spending because it has to augment and make-up for the upkeep of our roads, bridges, airports, etc. in order to provide better service to the Filipinos. Clearly, the shortcoming started in the Aquino adminsitration and the present government is bearing the brunt.

Fifth, the foreign debt of the Philippines. In this case, it reached its highest amount at almost US$78 billion dollars in 2012 during PNoy's time. Clearly, what we are experiencing now are merely vestiges of the borrowing ability of the past administration despite being stingy in building infrastructure.

Lastly, international speculation. This is where perceptions matter. This is where they want to pin the President. Hence, the reason why pro-Yellows are made to write for international newspapers making Duterte look bad. Portraying him as Hitler and giving the perception of the Philippines as a place not suitable for business. A deliberate demonization of PRRD that causes several businesses to avoid investing in the Philippines. 

So, people of the opposition, the next time you lament the peso-dollar ratio, be sure that after you blame President Duterte, try blaming others as well. Those who really are causing the problem.

Bruce Villafuerte Rivera Minerva Fuschia Rivera Bruskoday

Source: Atty. Bruce Rivera
 

Atty. Rivera Slams Critics for Blaming Peso's Downward Trends to Pres. Duterte Atty. Rivera Slams Critics for Blaming Peso's Downward Trends to Pres. Duterte Reviewed by Phil Newsome on 3/03/2017 Rating: 5

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