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Asia: Philippines seeks currency stability

Philippine President Gloria Macapagal-Arroyo, the only Asian leader to be feted with a state dinner by President Bush, says she makes business and investment promotion a component of every trip she takes.

"Our foreign policy is serving to fight poverty in the Philippines," she says.

While meeting with the US president in May, Arroyo sought wider access for Philippine-made garments to the American market, noting that garment manufacturing is a labor-intensive industry.

Garments and textiles are the Philippines' second-biggest export earner after electronics.

"The Philippines is also a premier destination for US business outsourcing," she says, noting that English is widely spoken in the Southeast Asian nation.

With a doctorate degree in economics from the University of the Philippines, Arroyo seemed at ease fielding questions from the US business press in New York.

She asserted that Philippine companies deserve to win contracts in rebuilding post-war Iraq, not only because of the Philippines' role as a key US ally, but also because Filipino workers have a wealth of skills and experience working in the Middle East.

"My decision to join the 'coalition of the willing' was not popular at first, but people are beginning to see that it was the right decision," Arroyo says.

The Philippine peso weakened to 55 to the US dollar in early March, but it strengthened to around 52.50 after the Iraq war ended.

Philippine finance secretary Jose Camacho said he was very happy with the peso trading around 52.50 to the dollar, although the currency later retreated somewhat.

The Philippine central bank has been the only central bank in the region seen selling dollars, while all around others are buying, analysts say.

Copyright Global Finance Media Inc. Jul/Aug 2003
Provided by ProQuest Information and Learning Company. All rights Reserved