Us Dollar At 3 1/2 Year Low Vs Peso

[Curley]

Most interested if the Canadian dollar buys more pescos than the US which is not usually the case even if the Cdn dollar is somewhat higher than the US

If that were true it would be an easy way to make money.

[gmb8585]

I may be wrong but if my recollection is correct the currency exchange booths tend to favour the US dollar over the Canadian $. From what I have read on other posts the main reason seems to be that there is more demand in the PH for US $ over Cdn. right now the Cdn $ is worth about 3 cents more than the US $. I would be willing to bet that this amount is not reflected at the currency exhange booths in Cebu. If I were there I could confirm it but I'm not. If anyone wants to check it out and report back to the forum, great. Curly, yes in theory you can make money if I am correct, but the spread would need to be greater because the banks also charge a fee to change Cdn to US thus negating any profit with a 1-3 cent spread. I will look into further but I need a boots on the ground report on what the exhange companies are paying for both currencies and the time and date of the information.

[earthdome]

The US Federal Reserve made QE3 (quantitative easing) official yesterday and open ended with no end date. Since the announcement the US Dollar is dropping even more.

This morning the USD is trading at 41.25 pesos/usd.

The tradeoff is that if you have investments in the US stock market it is seeing big gains since the announcement yesterday.

[i am bob]

And the Canadian $ is up to P42.7834. I"m waiting to hear what they are actually doing in the Philippines for the exchange rate!

:dance:

[earthdome]

And the Canadian $ is up to P42.7834. I"m waiting to hear what they are actually doing in the Philippines for the exchange rate!

:dance:

Yeah... yeah... yeah... rub it in. ;)

[i am bob]

What? After all those years of having a 75 cent dollar? I would rub it in?

Hmmmm.....

:mocking:

[JJReyes]

The United States Federal Reserve's recent decision is to print money. One effect is to devalue the currency and makes American goods more attractive for export. It also raises the price for imports, which will dampen the enthusiasm to purchase products many overseas this coming holiday season. That's the economic theory anyway.

The Philippine peso will appreciate vis-a-vis the American dollar during the near term. Americans may get a slightly better rate either next month or November before the American dollar again declines with the approach of Christmas. Filipino Overseas Workers returning home for the holidays will flood the banking system with foreign exchange.

[Call me bubba]

here is a article on why the rate is the way it is.

The Philippine peso, it seems, will strengthen further against the US dollar in the coming months and there is no way it will drop back to its previous lows of over 50 to a dollar.

Exporters and Filipinos working overseas should now get used to a stronger peso amid the economic woes of the United States and most of Europe.

The local currency, along with the rest of Asia, have appreciated against the US dollar as global fund managers bet on riskier assets like the peso.

Investments in dollar and euro assets offer little or marginal returns, driving fund managers and speculators alike to try their luck on Asia, including the Philippines.

The peso is hovering at four-year highs against the US dollar, surging to 41.50 early this week. The local currency’s strength is mainly influenced by the developments in Europe.

Nervous investors have dumped the euro in recent days because of the uncertainty of the Germany-led bailout package for Greece.

The peso, meanwhile, has fortified itself amid the huge inflows of foreign exchange from exporters and workers abroad, and revenues from tourism and business process outsourcing companies.

The Philippines’ huge international reserves of nearly $80 billion and a stronger-than-expected economy have boosted investors’ confidence and lifted the local currency.

A stronger peso is not bad at all for Filipino workers overseas and exporters. It reduces the cost of imports in peso terms, eventually resulting in lower production cost and inflation.

A lower inflation preserves the purchasing value of the peso and shields the beneficiaries of remittances from possible price hikes.

Reduced manufacturing costs as a result of a firmer peso may spur company expansions and create job opportunities. In sum, a stronger peso is generally good for the Philippines because it will generate more economic activities, other than exports.

The government, thus, must prepare for a stronger peso regime.

For one, it should offer an environment that will trim electricity rates to offset the impact on exporters.

The government must also motivate investors to produce more and prime them ahead of the anticipated global economic recovery.

http://manilastandardtoday.com/2012/09/14/the-peso-gets-stronger/

[i am bob]

Great info Bubba!

I just hope the Philippine Peso doesn't rise so high as to reverse the good that has come from it - and so that I can still afford to live there!

[nor cal mike]

I must say that I agree that the dollar will continue to decline in the near future

and the peso will continue to rise, hence this question,

If one were to transfer some savings to the Philippines and the predictions prove

to be inaccurate or if one simply wanted to move the money to another country

from the Philippines how difficult would it be ?