The Philippines economy is looking to avert a decline from global debt worries. The Peso, along with other Asian currencies, rose on Wednesday after the United States Federal Reserve promised to keep interest rates low through 2012.
The news has alleviated business concerns of a weak global economic recovery, leading to a slower than expected economic expansion in the US.
The Fed plans to keep rates low to push consumers to both spend and borrow - thus promoting growth of the economy.
The downside to lower rates in the US is a shrinking exchange rate between the Peso and the Dollar. The Philippines economy depends on US investment, and the lower the dollar goes, the more expensive it becomes to invest in the Philippines.
However, the trade off is one Filipinos should welcome. After all, the exchange rate would be irrelevant if the US economy were not strong enough to invest at all.
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