Peso fall and Capital goods

Talking about our current performance on trade and exports  that would make a change in the condition of our economy for the progress and development needed, we should be very keen on the situations that would affect anything specially speaking about the dollar exchange rates.

The government continuously speaks  about the condition of the dollar rates going up these days, and simply  appease the people on the situation with their comments, interviews that any movement of it is nothing to be alarmed or worried about. But actually, it is always hard to explain or justify the killing of the peso by the dollar due its effect will never be good both ways we think of its effects, that  based on the performances of the peso in the last 12 months that it has not recovered categorically, yet, it even deteriorated without any indication of recovery at all. This is the alarm that they are hiding, our inability to recover is a fact base on history. Ever since we've started, from the start of our government, one dollar to  two pesos, and to Marcos when seven peso to a dollar.

The Capital Goods excuse:

When our authorities speak about the rise of the dollar, they explain it in an optimistic way about the mention of "Capital Goods". They reiterate that the trend in the imports that caused the rise of the dollar is due to the performance of imports citing rise in Capital Goods have good effects for the economy, and eventually will make a recovery for the peso. The subject of the imported capital goods has been chronic already, that it has nothing to do, or very slightly can it do something to revert the rate of the dollar into its former condition after awhile. If it is true that capital goods will in turn result to make the decrease of the dollar, the result was just negative, it did not affirm the condition but instead continued to hurt further the condition of the peso.

The reality about capital goods represents imported component for our export sectors, which these component requires dollar, and since it represents to about 60 to 80 percent of our products aimed for abroad, its effect to recover the peso cannot make any imprint and effect, practically it results to nothing the explanation of the capital goods.