Weak peso, rising prices: Hong Kong’s Filipino workers take a hit
A fall in the Philippine currency could have meant greater spending power back home for migrants – instead overseas Filipinos have found rising prices in their home country leave them worse off than before
“A knee-jerk reaction of glee” from overseas Filipinos greeted the drop in the peso’s value, as workers figured the dollars they earned abroad would translate into greater spending power at home, according to Hong Kong-based NGO worker Aaron Ceradoy.
But the euphoria was short lived, as rising prices in the Philippines negated any advantage and led to many migrants scrambling to make ends meet.
Now, many Filipinos in Hong Kong are either “trying to add to their workload, borrow money or just spend a whole lot less to keep up with their families’ needs”, says Ceradoy, who works for the Asia-Pacific Mission for Migrants.
Baneng Mendez, 36, who has been a domestic worker in Hong Kong for 16 years, says the devalued peso means the amount of money she sends back to the Philippines has increased from 15,000 pesos (US$276) to 17,000 pesos. However, even the increased amount does not carry nearly the same weight as it once did, and she now struggles to pay for her three children’s education.
“When all of them have projects for school, it requires a lot more expense than it did before,” she says. Even with the help of her sibling, who is also working, they find it hard to cope.
She is far from alone. The peso has been in decline for the past few months, and is at its weakest in 13 years.
