Peso Likely To Reach P40-$1, Says Barclays Capital

[Mr Lee]

So what do you do to hedge your bets? I am going to do an online exchange as soon as I pick the best time to do it, so that we will have living expenses for the months we live in our condo in Cebu. Can it really hit p40 to $1, I guess it is anyones bet at this point. What do you think? The peso-dollar exchange rate would average at P40:$1 in the next 12 months, Barclays Capital said Wednesday revising its earlier forecast of P44-$1.  In a research note released to the media, the London-based investment bank said the exchange rate could even improve sharply to P42.50 per dollar in three months.  “Given the robust domestic economic fundamentals — a sharply narrower funding gap, robust remittances inflows, and the central bank’s apparent comfort with currency appreciation — we are lowering our three-month dollar or peso forecast to P42.50 and our 12-month forecast to P40," the bank said.  On Wednesday, the exchange rate closed unchanged at P44.26:$1 from Tuesday’s close, according to data released by the Philippine Dealing and Exchange Corp. The complete story here

[Jake]

So what do you do to hedge your bets? I am going to do an online exchange as soon as I pick the best time to do it, so that we will have living expenses for the months we live in our condo in Cebu. Can it really hit p40 to $1, I guess it is anyones bet at this point. What do you think? The peso-dollar exchange rate would average at P40:$1 in the next 12 months, Barclays Capital said Wednesday revising its earlier forecast of P44-$1. In a research note released to the media, the London-based investment bank said the exchange rate could even improve sharply to P42.50 per dollar in three months. “Given the robust domestic economic fundamentals — a sharply narrower funding gap, robust remittances inflows, and the central bank’s apparent comfort with currency appreciation — we are lowering our three-month dollar or peso forecast to P42.50 and our 12-month forecast to P40," the bank said. On Wednesday, the exchange rate closed unchanged at P44.26:$1 from Tuesday’s close, according to data released by the Philippine Dealing and Exchange Corp. The complete story here

Back in the 90's, I could remember the ratio was only 24:1. I guess it might be OK, provided the daily expenses for food, transportation, tuitions etc are adjusted accordingly to reflect a stronger peso. As you suggested Lee, it would be wise to grab that opportunity and buy pesos before the ratio takes a nose dive.Respectfully -- Jake

[Jollygoodfellow]

Us Aussies seem to be getting a bit more now.

• Today $1.00AUD = 41.5644 PHP
• Today $1.00 US = 44.3540 PHP

[Travis]

So what do you do to hedge your bets? I am going to do an online exchange as soon as I pick the best time to do it, so that we will have living expenses for the months we live in our condo in Cebu. Can it really hit p40 to $1, I guess it is anyones bet at this point. What do you think? The peso-dollar exchange rate would average at P40:$1 in the next 12 months, Barclays Capital said Wednesday revising its earlier forecast of P44-$1. In a research note released to the media, the London-based investment bank said the exchange rate could even improve sharply to P42.50 per dollar in three months. “Given the robust domestic economic fundamentals — a sharply narrower funding gap, robust remittances inflows, and the central bank’s apparent comfort with currency appreciation — we are lowering our three-month dollar or peso forecast to P42.50 and our 12-month forecast to P40," the bank said. On Wednesday, the exchange rate closed unchanged at P44.26:$1 from Tuesday’s close, according to data released by the Philippine Dealing and Exchange Corp. The complete story here

this is just 1 more reason that helped me decide to leave unstable cost of living for those of us who live on other currencies & a tight budget