Amid weak peso, oil crisis, traders told to be prudent

As a net-importing country bearing the brunt of an oil crisis and a weakening local currency, local manufacturers and importers are being urged to be more prudent in managing operations.

- By Andrea Louise SAN JUAN

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said that from a “risk management point of perspective,” importers should be “cautious and prudent” about sourcing goods.

Ricafort also stressed the importance of “hedging requirements.”

They also need to “lock in and manage the cost of their imports” given the “fundamentals of the country” as a net importing country, he added.

“We import almost all of our oil; we import a lot of consumer goods,” Ricafort emphasized.

And imports are becoming more expensive as the local tender continues to weaken against the US dollar. Last week, the Philippine peso hit two consecutive record lows, moving past the P61 per dollar mark.