Pensions and currency exchange rates

[OnMyWay]

46 minutes ago, Ram1957 said:

When I was stationed at Clark 77-80 it was 7 plus pesos for the dollar during that time period.

I see that on the chart.  Looks like it went above 10 for the first time in '84.

When you were at Clark, did everything seem dirt cheap?  I don't suppose you tried the beer back then?

Have you been to Clark recently?  It is booming.  You know where Fields is on the other side of the fence from SM?  They are building a giant mall building that is not very wide but many blocks long!  The new airport terminals are taking shape too.  They are far from the old terminals so I'm hoping they have a new dedicated access road.

[Heeb]

It was 7 pesos when I first got to Subic, Sam Magoo was 2 pesos, jeepney ride 2 pesos, tricycle ride 4 pesos. It went up to 20 pesos while I was stationed there and I was still always broke before payday.

[sonjack2847]

In 2011 I got 64-65 now I get about the same to the UK pound, it has spiked a few times but has been pretty stable.

[Ram1957]

9 hours ago, OnMyWay said:

I see that on the chart.  Looks like it went above 10 for the first time in '84.

When you were at Clark, did everything seem dirt cheap?  I don't suppose you tried the beer back then?

Have you been to Clark recently?  It is booming.  You know where Fields is on the other side of the fence from SM?  They are building a giant mall building that is not very wide but many blocks long!  The new airport terminals are taking shape too.  They are far from the old terminals so I'm hoping they have a new dedicated access road.

Yes it was dirt cheap then and the beer had a bad quality control problems. You had to look at it close to make sure it didn't have anything that wasn't suppose to be there. Plus we had stateside beer on base anyway. Biggest problem was the water, wasn't fit to drink back then.  But it was two different worlds back then you had basically a large American City on Clark and  once you left the base it was completely different. 

[jimeve]

13 hours ago, OnMyWay said:

And I see that 1995 was around a bottom for the dollar peso rate.  It went up from there until the 2007/2008 financial crisis.

Yes, but have you seen the rates in the 60's when the Philippines were one of the richest countries in South East Asia. Both US$ and GBP where more or less than 10 pesos.

[jimeve]

13 hours ago, Ram1957 said:

When I was stationed at Clark 77-80 it was 7 plus pesos for the dollar during that time period.

How much was a San Miguel?

[Dave Hounddriver]

In the past, I was very conscious of the monthly change in exchange rates.  Now I prefer to compare apples to apples instead of pesos to dollars.  It helps me to manage my stress levels.  Here is what I mean.

A sack of rice is cheaper in the Philippines than in Canada, regardless of the exchange rate.
A sack of potatoes in Canada is cheaper than in the Philippines ". . . "

A used car is often more expensive in the Philippines " . . ."
The insurance to drive that used car is more expensive in Canada " . . . "

I hope I have made the point that the exchange rate seems to be an ethereal amount that has little to do with the actual cost of living over the long term.  The best example I can think of is the price of gasoline at the pumps.  When driving around the Philippines, the actual cost of the gasoline is almost exactly the same as the actual cost of gasoline at the pumps in BC Canada, (averaged over the year) regardless of how many pesos I get for a Canadian dollar.  The biggest savings come from driving less and using less gas.  That makes it seem cheaper in the Philippines.

[jimeve]

3 hours ago, Dave Hounddriver said:

The biggest savings come from driving less and using less gas.  That makes it seem cheaper in the Philippines.

Might be the case in Canada but in the UK gas/fuel cost x2 as much than Philippines. cost more in the Philippines for us Brits. 

Edited June 10, 2019 by jimeve
worded

[GeoffH]

3 hours ago, Dave Hounddriver said:

I hope I have made the point that the exchange rate seems to be an ethereal amount that has little to do with the actual cost of living over the long term.  The best example I can think of is the price of gasoline at the pumps.  

 

I take your point (and it's a good one) and I hadn't been looking at it this way (although I've come across the concept before).

Fuel in the Philippines is similar in price to Australia at the moment (although it varies up and down a bit), car registration and insurance are cheaper by a lot in the Philippines but cars are more expensive.  Big motorbikes are more expensive too but interestingly small bikes and scooters are cheaper.  Fresh food is lots cheaper too but medical care is more expensive (that's a bit misleading because Australia has universal health care and subsidized medicines).

There is a simplified version of your idea that uses the McDonalds meal as an indicator called the Big Mac Index which uses that cost as a general indication of local living cost on the basis that McDonalds price their meals at a similar percentage of median disposable income in each country.

Big Mac Index

 

[Jack Peterson]

 I don't shop in the main so I don't really take that much notice, because my pensions (3) are paid Direct to PNB I am notified of the exchange rate which of late has been better than expected so I have a day to day figure in pesos of what I have here. Now the Shopping I do  myself is fuel which we have covered here but just at this time, My beer, My Cigs, and my Dogs Food are all cheaper than the UK so for that I am happy, Clothes? well I don't buy many nor shoes but I know i will not get any at a better price in the Uk so again, I am not too worried, Even Travel (Local) is far cheaper and I wonder what the return Airfare from Glasgow to London is now (It is about the same distance and flying time to Manila from Dumaguete) I am almost 100% sure the Cost is probably double + So Whilst I am here, I (just at this time) I am as Happy as that proverbial Pig