Exchange Rates

[Thomas]

I have noticed that the pound is dropping against the piso on a fairly regular basis.

I have said around 15-20 years, in the LONG run, ALL Western curencies will DROP compared to SE Asian ones, because so big part of productions are moved there. In the long run our home countries CAN'T live on producing services for OWN citizens and COVER with LOANS...

How pesos will manage compared to the other SE Asian countries in the future, will depend much of future politics.

One break/stop factor is that foreign investors are in MOST types of businesses expected to pay WHOLE, but get only 40 % !!!  :1 (103):

when i 1st arrived 2001.rate 49-51 to 1.$

Yes. US dollars have DROPED EXTRA much.

2001 USD was e g worth almost DOUBLE as now compared to Swedish krona.  

( Back then it was 11:50 SEK for one USD and RAISING, so in a long term contract with abroad we even put a paragraph saying the pay in USD will be REDUCED, if it passed 12 SEK per USD.  Last I looked it was only around 6:30 krona needed for 1 USD...)

[JJReyes]

A defensive strategy is to keep your money in several different currencies. The US dollar is relatively strong at the moment so I have been buying Japanese Yen, British Pounds, Canadian Dollars, and Euros. We are planning several overseas trips during the next two years so this is part of our preparations. Unfortunately, I forgot to buy Swiss Francs which just pisses me off.

Edited January 21, 2015 by JJReyes

[Dave Hounddriver]

the value of the Canadian dollar

 

I am dissappointed today.  I took a look at what Canadian Dollar Futures are like and it looks like no one is betting on the exchange rate of Canadian dollars to go up in quite a few years.  I can only hope I do not understand that chart but it sure looks dismal.

[i am bob]

the value of the Canadian dollar

 

I am dissappointed today.  I took a look at what Canadian Dollar Futures are like and it looks like no one is betting on the exchange rate of Canadian dollars to go up in quite a few years.  I can only hope I do not understand that chart but it sure looks dismal.

Thankfully it's just a guess a few people are making on what the $ will do... If i remember correctly, when our $ did that surge and eventually passed the US $, our $ was predicted to drop instead...

I was talking to a couple senior investment managers i know back in Canada last month... They are convinced the US $ is going to be coming down shortly as well... What scares them is they aren't sure if the CDN $ will hold its own (thus appearing to be rising) or drop in relation to the US $ which will make it looked like the CDN $ dropped as well!

[jpbago]

 

the value of the Canadian dollar

 

I am dissappointed today.  I took a look at what Canadian Dollar Futures are like and it looks like no one is betting on the exchange rate of Canadian dollars to go up in quite a few years.  I can only hope I do not understand that chart but it sure looks dismal.

 

 

Nobody was betting that the price of oil would go from $100 to $45 in 6 months either.

[Jack Peterson]

I forgot to buy Swiss Francs which just pisses me off.

 JJ, I heard they were still for sale in many Places. :thumbsup:

Problem with the Swiss Franc is no bugger will buy them back at least not in Euro countries and that is where you will be YES?

[Thomas]

I hadn't checked for a while. Back then the Swedish krona was strong. Then I could get 6,3 peso per SEK, but now only 5.3.  :boohoo;  (Similar deterioration for SEK compared to USD.)    

If that don't change, I better change my budget   :)

[stevewool]

Does it really matter what the exchange is, if you are living in what ever country at that time surely your money is in that currency, ok i understand if your income is still being made in another country, thats why it is best to have that little investment over there making it all in peso, just my thinking

[chris49]

Does it really matter what the exchange is, if you are living in what ever country at that time surely your money is in that currency, ok i understand if your income is still being made in another country, thats why it is best to have that little investment over there making it all in peso, just my thinking

 

I would agree that for a person on a typical western pension, you basically have to adapt your money to the local economy. You can be lucky, and let's be honest, most of us would probably spend the excess. Or you might have to cut back a bit...you are still well off right?

 

Investment? Tentatively yes, but the risks are high.

[Dave Hounddriver]

Does it really matter what the exchange is, if you are living in what ever country at that time surely your money is in that currency

 

 

Many expats here are paid a monthly pension in their previous country.  That is seldom transportable to another country so yes it really matters.  Over a long time that pension could depreciate to peanuts with a consistent drop in exchange rates.