DBP okays fixed exchange rate for OFW dollars

A government-owned bank has agreed in principle to the proposal of overseas Filipino workers (OFW) for a fixed exchange rate on their remittances to soften the impact of the continuing rise of the peso against the dollar.

Overseas Workers Welfare Administration Administrator Marianito Roque, during a taped interview for the government-produced “The Cabinet Speaks” at Malacanang yesterday, said the Development Bank of the Philippines has agreed to the proposal and that negotiations are ongoing with the other banks.

The idea was pushed by various OFW groups as a way to soften the impact of the rising peso on them and their families. Based on the proposal, the OFWs would commit to remit a fixed amount for one year through the participating banks who in turn would provide a fixed rate for them.

This means that regardless of how the peso moves in relation to the dollar, the OFWs would be given a fixed exchange rate on their remittances, agreed upon during the signing of the contract.

According to Roque, from January to October, the strong peso results in a loss of around P308 for every $100 sent to the Philippines. He said the President has ordered the various government agencies that have something to do with OFW concerns to find ways to help this sector and their families.

One of the measures currently being undertaken by the government is the provision of small businesses for the families of the poorer OFWs.

The President has instructed the concerned agencies to find the locations of the families of OFWs who belong to the lower-income bracket.

Apart from the OFWs, the government is also providing assistance to the small exporters who are also hard hit by the stronger peso.