Experts predict that our peso would even weaken versus the US dollar. In a short while the exchange rate would reach P58+ for every dollar.
In simple terms, that would mean higher prices of everything because we import almost everything. The cause of this dates back long ago. Since time immemorial, our economic policies were never geared towards strongly supporting our manufacturing sector so we could produce most of what we needed.
You can go back even further to the rood cause, the lack of nationalism. We snob local products even if these are priced at dirt rates. It is not, however, our entire fault. One big reason is the weak enforcement by government of quality control requirements. Nothing at all. To the extent that in many instances, buying local is like throwing away your hard-earned cash.
Other advanced countries, except China and perhaps a few others, have government agencies to check on the quality of products they manufacture for export. In our case, that will be a pie in the sky for generations to come.
The most advance countries have very nationalistic citizens like the USA, Japan, Germany, France, to name a few. Their people undertake the required sacrifice if only for them to be able to buy what their respective countries have made.
So what should we do to lessen our appetite for importation? Every Filipino should look at their buying habits and try to lessen the number of imported goods they habitually use or purchase.
Government must also really exert effort to encourage and support the local manufacturing sector.
Most of all, government must embark on a national drive to encourage the growth of, and to strengthen, our sense of nationalism, including some extra effort to improve the quality of local products so we can seriously say, “PROUDLY PHILIPPINE MADE.”
Otherwise, our appetite for imported goods will always be strong. You need US dollars to satisfy that so our demand for dollars will always be high. High demand means higher prices of dollars as we have to buy these.
How much would be the expected rate of increase of prices of basic goods? Whatever the government would say as the rate of inflation, multiply that by four (4) and you will be closer to reality.**