Overseas Filipino workers (OFWs) should still consider investing their savings even as the peso hit a new five-year low on Tuesday, a financial analyst said Wednesday.
Astro del Castillo, managing director of First Glade Finance Inc., told GMA News Online in a phone interview that weaker peso did not impact the economy as much as it did before the price of oil stabilized.
"Iba na ngayon. Before, oil prices in the domestic market tend to increase because weaker ang peso. When the peso is weaker, ang tendency is nagmamahal ang cost mo ng langis because oil is bought with dollars," Castillo said.
"However, nowadays, dahil mababa ang presyo ng gasolina, hindi masyadong malaki 'yung effect ng weaker peso. May impact, pero not as erratic as before," he added.
Because of this, inflation is kept to a single digit and interest rates for loans are kept at low levels.
"What is realistic is the inflation released by government is still low, single digit pa rin. Because inflation is low, interest rates are still manageable," Castillo said.
But before OFWs invest, he advised them to take care of the basics and educate themselves on the different ways of investing their hard-earned money.
"They have to make sure that they own their own house and car (first). They have to set aside money for their children's education and for health-related purposes. Saka na 'yung luxuries," Castillo said.
Filipino workers can choose to build their own businesses or invest in real estate, though the latter is a long-term venture and prone to speculation.
They may also consult stock brokers or bankers to open an account in the Philippine Stock Exchange or invest in unit time investment trust funds (UITFs) or mutual funds. —KBK, GMA News