Currrncy conversion

[Onemore52]

Is there any particular day that the Philippine currency is stronger than any other day? When shouldn’t I do a conversion?

[BrettGC]

I've noticed a tendency for the PHP to be weaker against the AUD towards the end of the working week, specifically Thursday and Friday. I'd say it's due to the RBA and other financial institutions preferring to make their headline announcements on Wednesdays Australian time.  

The above is not hard and fast and is a tendency only, subject to the vagueries of the market on any given day, so your mileage may vary.  Having said that, it could all change next week and trend the other way for a year....

It should also be remembered not to compare the AUD vs any other currency other than the PHP.  Its standing against the USD, GBP, NZD etc has little relationship to the AUD rate against the PHP.  Eg the AUD may be up against the USD but down against the PHP or vice versa or steady against both.  They're all stand alone conversions that are influenced in multiple different ways each in their own right.  

Edited May 29, 2023 by BrettGC

[Onemore52]

Thanks Brett.

[mountainside]

Don't know about day-to-day, but here's the forecast for 2023.  I'll hold off on converting USD to PHP for a while.

"The First Metro Investment Corporation – University of Asia & the Pacific Capital Markets Research projects the peso to weaken to the PHP57 to PHP59 range against the U.S. dollar this year while Fitch Solutions expects the exchange rate to reach PHP 56.5 to US$1.

Likewise, Standard Chartered Bank also forecast the peso to depreciate further for the third consecutive year, hitting the PHP57 to US$ 1 level anew by end-2023 – about 2.2% weaker than the end-2022 level of PHP55.755 to US$1."

https://www.globalpropertyguide.com/Asia/Philippines

 

[OnMyWay]

2 hours ago, Onemore52 said:

Is there any particular day that the Philippine currency is stronger than any other day? When shouldn’t I do a conversion?

Someone would need to follow a currency pair very closely to track day of week trends.  You might be able find a website that has a historical daily download which could then be analyzed.  XE actually has that but you would have to do one day at a time.

I follow the USD/PHP pair trend closely but only at a macro level.

[JJReyes]

Don't convert currency on weekends which starts Friday afternoon until early Monday morning.  I don't know if this is still true, but the Bangko Sentral usually sets their exchange rates at 11:00 am weekdays.  This is what banks and money changers follow.  To protect themselves, a larger margin is used for weekends incase of larger than expected swings in the global currency market.  

[OnMyWay]

On 5/31/2023 at 10:58 PM, JJReyes said:

Don't convert currency on weekends which starts Friday afternoon until early Monday morning.  I don't know if this is still true, but the Bangko Sentral usually sets their exchange rates at 11:00 am weekdays.  This is what banks and money changers follow.  To protect themselves, a larger margin is used for weekends incase of larger than expected swings in the global currency market.  

Generally true, but there may be exceptions for those who follow the rates closely.

BPI updates their USD rates at around 0930 weekdays.  Not sure how that syncs with BSP.  Then BPI may update again during the business day, especially during rate volatility.

On Friday, BPI freezes the rate for the weekend but you can exchange online using that rate.  The rate is frozen while there is still a business day, Friday, happening in the U.S.

Certain events during the U.S. Friday business day can effect the exchange rate, sometimes drastically.  Depending on the direction of the change, it could be advantageous to exchange at BPI over the weekend.

As I said, this is for those who follow rates closely, and bank at BPI.  I know know nothing about the other banks, but I suspect most don't allow online exchanges over the weekend.

[RBM]

On 5/29/2023 at 11:03 AM, BrettGC said:

I've noticed a tendency for the PHP to be weaker against the AUD towards the end of the working week, specifically Thursday and Friday. I'd say it's due to the RBA and other financial institutions preferring to make their headline announcements on Wednesdays Australian time.  

The above is not hard and fast and is a tendency only, subject to the vagueries of the market on any given day, so your mileage may vary.  Having said that, it could all change next week and trend the other way for a year....

It should also be remembered not to compare the AUD vs any other currency other than the PHP.  Its standing against the USD, GBP, NZD etc has little relationship to the AUD rate against the PHP.  Eg the AUD may be up against the USD but down against the PHP or vice versa or steady against both.  They're all stand alone conversions that are influenced in multiple different ways each in their own right.  

Noticed same with the kiwi, 90% of my remittances are done on Friday.