The New Peso Rate

[tropicalwaste]

If you want to back anything back against inflation and buy stocks of rice a relative of ours has over P8million in rice which has increased by P1million within 2 months. Rice is only going to continue to go up due to the problems of last years scandal with the subsidies. The financial markets are going to fluctuate for a few months yet and unlikely to improve drastically because any bad news will make them plummet as people are so cautious these days due to inflation and unemployment. The Philippines is not going to improve but has strange financial affects due to its remittances and declining export market its a bit like pouring a cup of petrol in an engine it keeps it ticking over but who knows if the engine is going to stop before the cup refills with fresh petrol.

[Art2ro]

We are just about back to where it was two years ago:http://finance.yahoo...P=X&a...&q=l&c=

Yes, but possibly headed in the correct direction. :thumbs-up-smile:

For now, I'm not too much concerned about the dollar to peso exchange rate until it drops down to PhP25 to the dollar (which is my lowest comfort zone level) and hopefully the local economy follows suite, it would just have to!

[Mr Lee]

We are just about back to where it was two years ago:http://finance.yahoo...P=X&a...&q=l&c=

Yes, but possibly headed in the correct direction. :thumbs-up-smile:

For now, I'm not too much concerned about the dollar to peso exchange rate until it drops down to PhP25 to the dollar (which is my lowest comfort zone level) and hopefully the local economy follows suite, it would just have to!

Art, you would know more than I would because you have lived here full time and lived here before I even started going back and forth, but from what I have seen in my years of going back and forth, I have never seen prices go down when the exchange rate gets worse. I would hope for everyones sake that the prices would follow but I seriously doubt they will.

[Art2ro]

We are just about back to where it was two years ago:http://finance.yahoo...P=X&a...&q=l&c=

Yes, but possibly headed in the correct direction. :thumbs-up-smile:

For now, I'm not too much concerned about the dollar to peso exchange rate until it drops down to PhP25 to the dollar (which is my lowest comfort zone level) and hopefully the local economy follows suite, it would just have to!

Art, you would know more than I would because you have lived here full time and lived here before I even started going back and forth, but from what I have seen in my years of going back and forth, I have never seen prices go down when the exchange rate gets worse. I would hope for every ones sake that the prices would follow but I seriously doubt they will.

It hasn't gotten to the worst level yet until the peso rate is at PhP25, may not see it that low again in my remaining life time! Filipinos are slow to change and hate to give up anything, but eventually they will follow suite!

[FlyAway]

What is everyone's opinion on how the up coming elections will affect the currency rate?

[Mr Lee]

What is everyone's opinion on how the up coming elections will affect the currency rate?

Eric, my opinion is that the exchange rate will get stronger for us in March and maybe early April and then go down should the elections end up bloody and then hopefully recover shortly after things become more stable. A lot is going to depend on if the elections go properly and no large amount of cheating is found out about and then who ends up elected will be a big issue. Of course if the Philippines has a failure of election and ends up under marshal law, then all bets are off. IMO as the elections draw near, any foreigner or returning Filipino who understands what may happen will stay out of the Philippines and therefore not be here spending foreign money, which should then in turn drive down the amounts of dollar reserves here, thus making the exchange rate rise but inflows from OFW and those of us married to Filipinos who send money home has been too unpredictable and keeps rising when the economy elsewhere is in the crapper and that just does not compute and makes no sense, so figuring this is almost impossible because there are just too many variables.

[TheMason]

What is everyone's opinion on how the up coming elections will affect the currency rate?

I don't think they will impact the exchange rate too much. I think the central bank will step in and maintain a somewhat stable exchange rate. Between now and the elections, I think the exchange rate will move to about 48:1. I don't think it will get any better than that unless there are failed elections. Even then, any exchange rate change will be short-lived and panic driven. Once the markets realize martial law doesn't mean defaulting on their debt, the rate will settle down again.

[Mr Lee]

http://finance.yahoo...SD;to=PHP;amt=1   Peso now 46 to 1 dollar.  

[Travis]

http://finance.yahoo...SD;to=PHP;amt=1 Peso now 46 to 1 dollar.

I just checked it earlier 46.56 is what it now says on there

[Mr Lee]

Thanks T, good to see it is heading back up.  :SugarwareZ-037: Here is a screen shot for those who may read this post in the future.