Good News For Expats? Come On 1=50!

Recommended Posts

Bruce
Posted
Posted


MANILA, Philippines - The peso actually weakened in value for the past two decades in real terms, the Bangko Sentral ng Pilipinas (BSP) said, as the local unit plunged to its lowest level for the year on Tuesday.

 

“If we take a longer view of the economy, from 1995 to 2012, the peso has actually depreciated in real terms against a basket of currencies,” said Francisco Dakila Jr., director of Center for Monetary and Financial Policy. The measurement, called real effective exchange rate (REER), takes into account the effect of inflation on trimming the value of currency. It gauges the value of the peso against a basket of major currencies.

 

The most watched is the basket measuring the peso’s value against major trading partners which now include the Australian dollar, euro, US dollar, Hong Kong dollar, Thailand baht, Malaysian ringgit, Taiwan dollar, Singapore dollar, South Korean won, United Arab Emirates dirhams and Chinese yuan.

The central bank generally monitors the REER to measure the peso's strength. It justifies that REER is a better gauge than the day-to-day fluctuations of the peso against the dollar.

 

“Basically, we were able to accommodate a nominal appreciation of the peso, but in real terms, the peso actually declined in value,” BSP Deputy Governor Diwa Guinigundo told reporters in a briefing.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Concerns over a strong peso have been repeatedly raised, particularly by dollar-earning exporters, families of migrant workers and business process outsourcing employees. A firm peso trims the value of their income.

 

Last year, BSP data showed the local unit strengthened by 6.8 percent versus the greenback to become Asia’s second best performer. Guinigundo however said with the REER actually declining, it means dollar earners did not actually lose money.

“The competitiveness of exporters against other bags of economies actually did not drop that much. In fact, it did not drop, it even increased in terms of REER,” he added. The peso has been moving within the 40-peso-level since the start of the year, stronger than the official P42-P45 assumption for 2013. On Tuesday though, the local unit dipped to 41.07 to a dollar, the weakest since Dec. 27.

The currency lost 23 centavos from its close of 40.83 Monday. Dollars traded amounted to $935.760 million, up from $664.944 million the previous day.

 

“There was a confluence of factors that affected the peso. First was the market reaction to the disappointing imports report released today (Tuesday),” a trader at a local bank said in a phone interview. “There was also a strong demand for dollars due to the coming long weekend. It was also the end of the quarter and corporations need to settle in dollars,” he added.

Moving forward, the trader said market players would take a look at foreign economic indicators before making their bets on the peso.  Bailout negotiations in debt-ridden Cyprus will also be monitored.

 

“I guess the weakness (yesterday) also showed market players have actually seen the agreement on Cyprus as a bad precedent of the government asking banks to close shop for bailout,” he said.


.Off philstar.com

  • Like 2
Link to comment
Share on other sites

i am bob
Posted
Posted

Good article but not complete enough to know what is what...

 

The biggest problem is inflation in the Philippines.  Get a handle on inflation and then take a look at the "Basket".  Hmmm...   Why the big change still in the REER?  Because inflation is not the only factor.  Outside influences affect the REER more than they are saying.

 

The point is the article was trying to say that the Peso really didn't do anything value-wise in the Philippines as things still cost more.  They should have explained that inflation is their biggest threat right now and that it needs to be controlled.  As for the REER?  Reading between the lines makes me think the Philippines Peso has upset somebody high up in the International Financial Industry and that the Peso may be due for a good old-fashioned slap-down.  Good for us ex-pats but not so good for the country.  

 

Then, again, this article was poorly written and things in the future could go in the completely opposite direction.

  • Like 1
Link to comment
Share on other sites

Will
Posted
Posted

We just changed for 40.85 at Ayala Mall. Pacific Core (I think that's the name) always has the best exchange rate IMO. They don't require your ID and they usually take bills that the idiots at SM won't. That's the only place I go out of my way to use. Girls there know me and asawa now, we go there pretty often trying to hit the upswings.

  • Like 2
Link to comment
Share on other sites

Call me bubba
Posted
Posted

We just changed for 40.85 at Ayala Mall.

,,,,,,,,they usually take bills that the idiots at SM won't.

 

wait,, it will be higher on wednesday...

 

Could you explain what you mean about the "BIILLS" that SM will not take? so that others will be more aware of what they do or not do?

  • Like 1
Link to comment
Share on other sites

bootleultras
Posted
Posted

Probably talking about the 1996 series that so many have problems exchanging due to the high number of forgeries...... Also if you have any of them bills that are marked or have them silly stamps on, you also have problems exchanging them, thats in my experiences anyway.

  • Like 1
Link to comment
Share on other sites

Will
Posted
Posted

Probably talking about the 1996 series that so many have problems exchanging due to the high number of forgeries...... Also if you have any of them bills that are marked or have them silly stamps on, you also have problems exchanging them, thats in my experiences anyway.

Exactly. Also at SM they want your ID, want you to list every serial number on the bill, if a bill has a small nick forget it. I feel like a criminal with the crap they put you through. Oh, it's not just 1996 series, they have a list of years. If you say anythng they just point at the sign. I understand its a rule but they could at least be friendly, which they certainly are not. All the time it takes to jump through their hoops is kinda tough sometimes when you got an impatient baby screaming.

  • Like 3
Link to comment
Share on other sites

earthdome
Posted
Posted

Foreign exchange rate now 41php/USD, the highest the USD has been vs the peso in 3 months.

  • Like 1
Link to comment
Share on other sites

earthdome
Posted
Posted

Probably talking about the 1996 series that so many have problems exchanging due to the high number of forgeries...... Also if you have any of them bills that are marked or have them silly stamps on, you also have problems exchanging them, thats in my experiences anyway.

Exactly. Also at SM they want your ID, want you to list every serial number on the bill, if a bill has a small nick forget it. I feel like a criminal with the crap they put you through. Oh, it's not just 1996 series, they have a list of years. If you say anythng they just point at the sign. I understand its a rule but they could at least be friendly, which they certainly are not. All the time it takes to jump through their hoops is kinda tough sometimes when you got an impatient baby screaming.

 

I haven't had to use a money changer since my second week in Philippines once I got both a USD and peso savings ATM accounts setup with BPI. I just go online to the BPI website and transfer money from my USD account to the peso account using BPI for the foreign exchange. BPI seems to have relatively good foreign exchange rates. You do need to plan a bit because you can only do the USD to peso transfers online during business hours from 9:30AM t 3:30PM.

 

Then I use my peso ATM card for cash and only go to the bank once a month to deposit a check in my USD account.

  • Like 2
Link to comment
Share on other sites

Bruce
Posted
Posted

Good for us ex-pats but not so good for the country.

 

HEY BOB!

 

You are a CANADIAN... right? have at least a passing interest in the game of HOCKY? Maybe  afan og the game.... well what is that small black round thingie they slap around on the ice?

 

Yeah, that thing..... What is it? a PUCK? OK then........ In relation to your 2nd half of the statement you make above.........  

 

Well................... P U C K them! The higher the dollar the better for us and the better for the OFW sending back money!

 

Christ man, Jake supports 1/2 of the extended family as it is! Any better exchange rate certainly helps him..... you DO what to help Jake, now don't you.... Bob?   :thumbsup:

  • Like 1
Link to comment
Share on other sites

Call me bubba
Posted
Posted

here is a range of rates(GDP and peso to $) over the past 30 yrs,

 

 

1980 - 5.2% GDP, P7.5 to USD
1981 - 3.4% GDP, P7.9 to USD
1982 - 3.6% GDP, P8.5 to USD 
1983 - 1.9% GDP, P11.1 to USD
1984 - (-)7.3% Negative GDP, P16.7 to USD
1985 - (-)7.3% Negative GDP, P18.6 to USD
 

President In-Charge- Cory: High GDP (regressing to negative), stable
currency
1986 - 3.4% GDP, P20.4 to USD
1987 - 4.3% GDP, P20.6 to USD
1988 - 6.8% GDP, P21.1 to USD
1989 - 6.2% GDP, P21.7 to USD
1990 - 3.0% GDP, P24.3 to USD
1991 - (-)0.58% Negative GDP, P27.5 to USD



President In-Charge- Ramos: High GDP (progressing), stable currency
1992 - 0.34% GDP, P25.5 to USD
1993 - 2.12% GDP, P27.1 to USD
1994 - 4.4% GDP, P26.4 to USD
1995 - 4.68% GDP, P25.2 to USD
1996 - 5.9% GDP, P24.7 to USD
1997 - 5.2% GDP, P29.0 to USD



President In-Charge- Erap: Medium GDP (progressing), currency crisis
1998 (-)0.58% Negative GDP, P40.0 to USD, global crisis
1999 - 3.1% GDP, P39.1 to USD
2000 - 4.4% GDP, P44.2 to USD



President In-Charge- Arroyo: High GDP (progressing), high but stable
currency
2001 - 2.9% GDP, P50.1 to USD
2002 - 3.7% GDP, P51.6 to USD
2003 - 5.0% GDP, P54.2 to USD
2004 - 6.7% GDP, P54.2 to USD
2005 - 5.0% GDP, P55.1 to USD
2006 - 5.2% GDP, P51.3 to USD
2007 - 6.6% GDP, P46.2 to USD
2008 - 4.2% GDP, P44.5 to USD
2009 - 1.2% GDP, P47.6 to USD



President In-Charge- Ramos: High GDP (progressing), stable and regressing
currency
2010 - 7.6% GDP, P45.1 to USD
2011 - 3.7% GDP, P43.3 to USD
2012 - 6.6% GDP, P41.0 to USD

  • Like 2
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...