Peso Strenghtening Against the Dollar
By anne25penn
@anne25penn (3305)
Philippines
February 2, 2013 6:49am CST
Since December I have noticed that the exchange rate of dollar to peso has gone lower. Around P2 to P4 to be exact. I felt the drop in the exchange when I had some dollars changed expecting to have a few hundred pesos extra, but what happened was the opposite. I was actually a few hundred pesos short and I had to make some adjustments on what I needed to spend for December. It has dropped so low that I decided to hold on to the remaining dollars that I still have.
Economists say that it is possible for the exchange rate to go as low as P37 to a $1. Right now it is at P40.60 to a $1 and still changing every day. If it goes that low, how affected will you be?
3 people like this
11 responses
@xtedaxcvg (3189)
• Philippines
3 Feb 13
I think I've heard that the Philippines' economy is forecasted to grow exponentially over the next few years because of the investments of foreign firms. I have relatives in the US and they are sending money not as our primary means of income but as supplements for our everyday needs. I think some of our OFWs will be forced to go home or find higher pay jobs on other countries because of this declining rate of the dollar.
1 person likes this
@anne25penn (3305)
• Philippines
3 Feb 13
That is the downside of the peso strengthening against the dollar. OFW families find themselves now with lower spending power or income since the exchange has gone drastically down. Thank you for your reply.
@Raine38 (12391)
• United States
2 Feb 13
Honestly I have mixed feelings about this economic "event". As a Filipino, I am happy to learn that somehow the economy is doing good and sort of surviving amidst the big players. At least our small country's purchasing power is strengthening. But as someone who's got family and friends who work abroad and gets paid in US dollars, this poses some problem in my own personal purchasing power. I used to be able to afford the rent and groceries in Manila for USD200.00. Now like what you said, I have to make adjustments because it's mo longer enough.
1 person likes this
@anne25penn (3305)
• Philippines
3 Feb 13
The peso-dollar exchange rate is strengthening, but it hasn't addressed the issue of inflation. I was also used to spend less than a hundred dollars for my groceries per month. Now, I have to spend more since prices of goods have gone up. Good thing is I'm no longer renting. Thanks for your reply.
@anne25penn (3305)
• Philippines
3 Feb 13
It does, but for the past three months it has been going down. Thanks for your reply.
@ARIES1973 (11426)
• Legaspi, Philippines
2 Feb 13
They say it is because of the strengthening economy of the country. I heard (I am just listening because I was myLotting, he he) this report last night on television that the country had an increase of 6.8% increase on the economy for 2012.
The sad thing is the effect of this said increase can only be felt by the rich and not by the lower level of society. And we having to work online getting payments in dollar are one of the most affected.
Well, let us just hope that this increase in our economy could give benefit in the long run.
Have a nice day!
@anne25penn (3305)
• Philippines
3 Feb 13
This peso strengthening against the dollar isn't a good thing actually, because economists say that it will not create jobs. It would rather create the opposite since foreign investors will now look at other countries where the exchange rate is much stronger. Thanks for your reply.
@kenshin2143 (1880)
• Philippines
3 Feb 13
Its pretty sad considering that we have relatives abroad who are working there. But as to the stability of Philippine economy, its really very overwhelming. As far as I can remember, one stock broker visited the house last time and she said that Philippines is the number 1 in asia with the fastest growing economy.
@anne25penn (3305)
• Philippines
3 Feb 13
In terms of stocks, yes it is a good thing right now for our country. I also have some stocks and I can tell you that my money doubled in a year. Economists aren't really that happy or excited with the sudden surge because they are also warning against a bubble effect. Meaning that it will grow and grow and then suddenly bust, which I hope will not happen. Thank you for your reply.
@romzee (937)
• Philippines
3 Feb 13
Yes, stocks hit again a historic event just last week. I think the rise of our stocks are artificial and brought about by idle money coming from western countries and find a temporary lucrative earnings in our stock exchange. Once this funds are taken out, the sudden burst experts are predicting will surely happens.
@mariaperalta (19073)
• Mexico
2 Feb 13
Same here in Mexico was 12.65 a month ago now 12.25... Means our peso is worth more to us. Sure helps will prices here.Have a great day there...
@anne25penn (3305)
• Philippines
3 Feb 13
It looks like it's a global thing then if the Mexican peso is also strengthening. Thanks for your reply.
@rsa101 (38166)
• Philippines
4 Feb 13
I guess our economy is way much healthier now compared to other years where the dollar was really swallowing us. Now it seems like we have enough reserves that pushes the value of dollar to really go down. It is actually bad news for OFWs since this means that their earnings looks a bit lower already because of the weakening dollar value. But for Philippine economy this may be good since we are able to pay our external debts at a cheaper or lower rate. But I hope that it woudl not further go down because I know many OFWs and online workers would indeed be disenfranchised because of this.
@mensab (4200)
• Philippines
2 Feb 13
the forecast of the experts points to further appreciation of peso. you are right. it can go as low as 37 pesos per 1 dollar. if you have any doolars in your possession, it is advisable to exchange them now since there is no indication that the US dollar will recover from the strength of peso. as the philippine economy is doing well, the opposite can be said to the US economy.
@anne25penn (3305)
• Philippines
3 Feb 13
I've decided to hold on to them because I have an out of country trip this year and it is easier to bring dollars than change peso to the local currency. Thanks for your reply.
@natliegleb (5175)
• India
2 Feb 13
for sure and the peso rate is strengthening day by day and also the cash inflow is more for sure
@romzee (937)
• Philippines
3 Feb 13
The peso strengthening against the dollar is not because our economy is growing.
What was actually happening is that the dollar is losing it's strength in almost all currency in the world. Our economic strength is fake because all this growth is brought about by big government spending and increase inflow of dollar remittances from our OFW that stimulates our economy. Take out all OFW remittances and surely our economy will go down the drain! That's how dependent our economy from our unsung heroes, the biggest dollar earner and export of our country... and yet always taken for granted by this government!
@andrewbarclave (485)
• Ireland
2 Feb 13
i'm wondering how long it will take for the americans to be racist about this :P
