Us Dollar At 3 1/2 Year Low Vs Peso

[earthdome]

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 ?

There are 4 potential issues.

1. US financial institutions are required to report to the US government any foreign transactions >= $10,000 USD, some financial institutions will report at lesser amounts. And you are required to make annual reports to the IRS on foreign accounts.

2. Philippine bank accounts are insured at a much lower value, I think it works out to around $12,000 USD.

3. Be careful what Philippine bank you choose, if you use a bank, smaller banks in the Philippines have been known to go under.

4. You can have a USD account and/or a peso account. In this case you want a peso account so you will have to research a way to convert USD to peso without getting hit with large foreign exchange fees. You can also be hit by wire transfer fees. If you are there, you could deposit a US check, but it can take 30 days for it to clear. I have heard many say that they withdraw cash from their USD account, then use a good money changer to convert to peso, then deposit the pesos.

One positive, Philippine banks have a higher interest rate on deposits, but the Philippine government automatically takes a percentage of your earned interest as taxes.

How much further will the USD fall against the peso? Who knows. There have been others here who have said Philippine monetary policy is to keep the peso at 40-45/USD.

[nor cal mike]

Thanks Earthdome. Very important issues indeed. I will start my research

using them.