unit test 121116 - 1. The Philippines peso has increased...

1. The Philippines peso has increased more than 8 % in the last six months, but
not everyone is happy.
2. “We are not only losing, we are dying,” Roberto Amores, president of the
country’s largest food exporters’ association and the mango exporters’ group
said. Mango customers have turned to Mexico.
3. Exports account for about 40 % of the country’s output and they are finding
it increasingly difficult to make money due to the currency appreciation . The
peso touched a 3-year high of 50 pesos per US dollar last week. The peso’s rise
had more than halved food exporters’ profit margins. Exporters have
recommended the central bank reduce the exchange rate to 52 pesos per US
dollar. The central bank has rejected the proposal, saying it only intervenesto
reduce volatility.
4. The Philippines has 8.5 million workers overseas sending home money, worth
about 10 % of gross domestic product. For them, the peso’s strength means their
earnings buy less at home. For the millions of families who rely on handouts from
relatives working abroad,the loss of five pesos in the dollar’s value means they
have about 60 billion pesos less to spend annually.
5. Some economists say the impact on exporters could have a consequential effect
on consumer spending, employment and growth. “If exporters are losing money,
then economic growthwill be at risk,” said the economic planning secretary.
Annual growth of 7 to 8 % is needed to significantly improve living standards in
the Philippines.
6. Despite the problems associated with a currency appreciation, there are those
who say the benefits to the Philippines outweigh the costs. The cost of repaying
US$76 billion of debt is reduced, leaving more public funds to improve welfare.