How OFW Remittances Affect the Peso: Understanding Their Role in the Philippine Economy
Overseas Filipino Workers (OFWs) are often called the modern-day heroes of the Philippines — not only because of their sacrifices abroad but also due to the vital role their remittances play in sustaining the nation’s economy. Every month, millions of Filipinos send money home to support their families, but beyond personal aid, these remittances have a significant influence on the Philippine peso (PHP) and the overall foreign exchange market.
Why the Peso Rises and Falls: Understanding USD/PHP Movements
In the Philippines, many of us check the U.S. Dollar to Philippine Peso (USD/PHP) rate almost as often as we check the weather. Whether it’s for OFW remittances, imported goods, or fuel prices, the peso’s value affects every Filipino. But what really drives these changes? Why does the peso strengthen one month and weaken the next?