MANILA – A research by DBS Group projects the Philippine peso to breach the 50.3-51.1 to a US dollar range it has been trading since October 2019 as a result of the impact of the coronavirus disease 2019 (Covid-19).
In the Asian part of its report titled “FX: A tale of two halves on Covid-19” dated February 26, the Singapore-headquartered financial institution said optimism on the government’s bid to lift 2020 domestic growth to about 6.5 to 7.5 percent from 5.9 percent last year has decreased.
It said tourism will take a hit from lower tourist arrivals not only from China, where the epidemic started, but also from other countries that reportedly registered a significant number of Covid-19 cases like Japan, South Korea, and Taiwan.
The latest report said passengers of the cruise ship Diamond Princess, currently docked in Yokohama Port in Japan, who have developed Covid-19 symptoms or have been infected with SARS-CoV-2, the new coronavirus that reportedly causes the disease reached about 700.
At least 26 people from several countries who were quarantined in the ship but have returned to their respective countries have tested positive for the virus upon returning home. These are from the US, Australia, the United Kingdom, and Israel.
The report said although the Philippines have three confirmed Covid-19 cases and one death as of February 22, there are overseas Filipino workers (OFWs) who were infected while onboard the Diamond Princess as well as in Hong Kong.
“Repatriation of OFW could lead to more cases in the future and lesser remittances needed to offset wide trade deficits and contain the current account deficit,” it said.
It, however, cited that the Bangko Sentral ng Pilipinas’ (BSP) decision to cut its key policy rates by 25 basis points last February 6 is a boost “to cushion the economy.”
Last Monday, the peso closed at 50.96 against the greenback, little changed against its 50.94 finish Friday last week. (PNA)
