Ok You Finacial Wizards....question

[scott h]

Like most Filipinas, if my wife hears something or sees it on facebook she takes it as Gospel, like wet hair from rain is bad, but shower is ok. :1 (103): .

 

She claims that the exchange rate goes down each year at Christmas because of all the OFW remittance that flows in. But I have noticed that the local exchange rate follows very closely the FOREX rate, which is international I believe. So what's the deal? Do OFW's really effect the world exchange rate?

 

This is just for me, there is no way I am going to tell the war department she is wrong, if what I suspect is true. :cheersty:

[sonjack2847]

If a lot of dollars or pounds are being changed into peso then that can affect the exchange rate.

[Jack Peterson]

If a lot of dollars or pounds are being changed into peso then that can affect the exchange rate.

 

True But why? One would think it was good, Money Coming in and being  Spent here :thumbsup:

 

Jack  :)

Morning All 

[Old55]

Clearly you don't have the need to know. Move along nothing to see here....... your wife is always right. :attention:

[scott h]

your wife is always right

 

gawd your so right, what in the world was I thinking :1 (103):

[Mike J]

your wife is always right

You are probably familiar with the philosophical question; "If a tree falls in the forest and there is no one to hear it, does it still make a sound?".  You may not have heard another similar deep question; "If a man speaks in a forest where his wife cannot hear him, is he still wrong?"   :hystery:

[scott h]

, is he still wrong?

 

I am betting YES

[Dave Hounddriver]

I have noticed that the local exchange rate follows very closely the FOREX rate, which is international I believe. So what's the deal? Do OFW's really effect the world exchange rate?

 

The answer to that question lies in figuring out how the FOREX rate is set.  I have read in the past that the Bangko Sentral plays an active role in determining the exchange rate.  If such is true then they would surely fiddle with the value at Christmas time to get more dollars into the country from their OFWs.  But I can find very little about that when Googling today.  Best confirmation I can find is on the Wiki site that says:

 

https://en.wikipedia.org/wiki/Philippine_peso

 

From the opening of the Bangko Sentral ng Pilipinas in 1949, successive governments have continued to devalue the currency to lower the accumulated domestic debt in real terms, which in December 2005 reached ₱4.02 trillion. 

 

[Jake]

Financial wizard, I am not.  More like a lizard being gobbled up by a bigger lizard.  I don't think I would ever completely understand how foreign exchange of international money is determined on a day to day basis.  I would assume all the central banks have some sort of complicated algorithms, predictive tables, under the table negotiations and their own wizard balls.  

 

I mean how does each European country determine their face value when they joined the Euro market?  Is it based on their gold bullion reserves, natural resources, consumer market and trading habits?  Or is it really based on a few men jerking each other off?  Is it really based on perception or confidence of the mighty dollar, pound or dinar?  

 

Is Forex the same as foreplay?  I scratch your bayag and you scratch mine?   

Edited October 16, 2015 by Jake

[frosty (chris)]

 

 

Is Forex the same as foreplay?  

Well it is I suppose, even the market helps, it goes up and down, sometimes at a rate of knots and if you get the trade right you can sure get excited :nudie: