Exchange Rate

[FlyAway]

OK, what is going on now? It has been a downward trend this week. Was going to send a large chunk of money but was hoping for at least 43 to 1. As of today it is 42.06 Peso to 1 USD?

I keep a daikly track using: http://www.xe.com/ucc/

OK, what is going on now? It has been a downward trend this week. Was going to send a large chunk of money but was hoping for at least 43 to 1. As of today it is 42.06 Peso to 1 USD?

I keep a daikly track using: http://www.xe.com/ucc/

For the "One Click" bookmark I have been using this.

http://www.xe.com/uc...From=USD&To=PHP

Rate really sucks right now when you are looking to move a fair size amount of cash.

[JJReyes]

Although the stated national policy is a floating currency rate, the Bangko Sentral ng Pilipinas (Central Bank of the Philippines) will intervene to keep the exchange rate somewhere between PHP 40 to PHP 45 to USD 1. There might be occasions when market forces causes more rapid up and down gyrations. That is when Bangko Sentral steps in. The desire is currency exchange stability.

By the way, the Bangko Sentral has not change their original projections in early 2012 that the Piso would trade closer to PHP 45 to USD 1 towards the end of 2012. Kindly note that I am quoting someone's projections, so don't get mad at me if it is wrong.

[GregZ]

RIGHT NOW it is 41.73 PHP to USD. I'm happy to time it right and get the exchange at 42 or better for now. :dance:

About location... In Cebu City, I've been going to the Fooda on V.Rama; their rate seems to stay a tenth or so above Robinson Fuente. It makes a difference when you change USD $1,000 if you are in the area already. I am because I WALK a LOT.

AND the malls make you fill out paperwork so they can track you also. Probably a gov't anti-money laundering thing, BUT the Fooda has never asked me to do any paperwork. SHHHHHHhhhhhhh, it is probably illegal.

Somebody let me know if I can get in trouble with this one. ^ ^ ^ ^ I don't care if they do ... just not ME.

Edited August 4, 2012 by GregZ

[Mike S]

When we used to use money changers (now we use the money changer that comes to the bank) we used the one in either Robinson's (basement) or the one in Raintree Mall on Mango Ave. .... called Alcon .... very good rates and they have a good secure location ...... 245-96-08 (landline) ....... MS Money (Robinson's) ...... 255-89-92 / 253-15-83 ......

SLB (near the casino ... up from Mercury Drugs) 254-55-80 / 254-49-48 ........ you can call and get current prices ...... keep in mind that the rates change at 10am and 2pm ..... so you might get better or worse after these times ......

Here is the site I use for currency updates ... it updates itself every 5 minutes .......... http://www.fxcentre....hange_rates.asp ....... don't get upset if the rate you get is a little bit lower than the quoited price here as they will go by the rate being paid that they have access to .....

Edited due to the concerns of another board member

Edited August 4, 2012 by Mike S

[OnMyWay]

When we used to use money changers (now we use the money changer that comes to the bank) we used the one in either Robinson's (basement) or the one in Raintree Mall on Mango Ave. .... called Alcon .... very good rates and they have a good secure location ...... 245-96-08 (landline) ....... MS Money (Robinson's) ...... 255-89-92 / 253-15-83 ......

SLB (near the casino ... up from Mercury Drugs) 254-55-80 / 254-49-48 ........ you can call and get current prices ...... keep in mind that the rates change at 10am and 2pm ..... so you might get better or worse after these times ......

Here is the site I use for currency updates ... it updates itself every 5 minutes .......... http://www.fxcentre....hange_rates.asp ....... don't get upset if the rate you get is a little bit lower than the quoited price here as they will go by the rate being paid that they have access to .....

Now each month we just go to our bank and they have a money changer come to the bank and exchange $ to p for us so we never have to walk around with a full months cash in our pockets ..... we just put it in our accounts right at the bank ...... oh ... by the way bank rates on exchanges suck ..... so don't use them unless you have to ... IMHO

MIke, so, if I read between the lines, you are doing something like this???

You have a $ account and a peso account

Deposit $ to the dollar account with checks

When needed withdraw $ and meet with the money changer

Go back in and deposit the pesos to the peso account

Sounds like a nice setup that gives you a lot more control of the X-rate, especially if those are reputable money changers that you can trust. If I have stated this correctly, do the bank(s) know or care?

[Mike S]

Sounds like a nice setup that gives you a lot more control of the X-rate, especially if those are reputable money changers that you can trust. If I have stated this correctly, do the bank(s) know or care?

Edited due to the concerns of another board member

Edited August 4, 2012 by Mike S

[JJReyes]

The online foreign exchange rates are good for providing an estimate. Global currency traders are active 24/7 buying and selling depending on the clients' needs. Traders use T-1 lines, which confirms transactions in nano-seconds. It is the same for gold, copper, oil, wheat, corn, pork bellies (bacon), etc. The system is supply and demand. That's what they try to make us believe. Of course, there is a lot of manipulation. The most recent scandal is LIBOR (London InterBank Offered Rate). The banks involved cheating us made billions.

The Philippine banks and money changers wait for the Bangko Sentral ng Pilipinas bulletin issued daily except Saturdays, Sundays and bank holidays. I forget if it is 11:00am or 12:00noon when the rate is electronically posted. This is the daily "buy" and "sell" rate. It is to prevent potential losses. Everyone in the system makes money through the spread or commission. Banks and money changers may give you either a less or more favorable rate. It depends on the bank and their policy. If you are exchanging $100, you are nobody. If you are exchanging $5,000 ask the teller and then request for the bank manager. You might get a slightly better rate. Same with money changers. Again, a $5,000 customer maybe a nobody. Maybe their better rate is for a $50,000 customer. It depends.

Edited August 4, 2012 by JJR

[OnMyWay]

Sounds like a nice setup that gives you a lot more control of the X-rate, especially if those are reputable money changers that you can trust. If I have stated this correctly, do the bank(s) know or care?

Well actually OnMyWay ..... the bank itself calls the exchange company they use ..... there are 2 different companies ..... the one with the best rate brings the money to the bank (the bank calls them and tells me the rate at that time before I agree to exchange) ...... this way we don't have to receive the bank rate and get a higher return as the bank is not using their money ....... they withdraw the dollars from my dollar account and have it ready when the courier arrives he takes the dollars and hands us pesos ..... I always check the rate before I leave the house to make sure it is with in the ball park ...... I have herd of people calling a changer and making arrangements for them to meet them in the bank where they exchange money ..... but with the bank we use they just do it for me ..... just I can't call any changer I want ..... but in the 4-5 years we've been doing this we are only talking about a few centavos difference in rate exchange .... and the security is well worth a few centavos when you are talking about cashing in $1200 or so ...... makes me feel safer anyway ..... :dance: :hystery:

Thanks Mike! I'm surprised the bank does this because it would seem that they would like to make money by charging their normal spread.

[JJReyes]

Well actually OnMyWay ..... the bank itself calls the exchange company they use ..... there are 2 different companies ..... the one with the best rate brings the money to the bank (the bank calls them and tells me the rate at that time before I agree to exchange) ...... this way we don't have to receive the bank rate and get a higher return as the bank is not using their money ....... they withdraw the dollars from my dollar account and have it ready when the courier arrives he takes the dollars and hands us pesos ..... I always check the rate before I leave the house to make sure it is with in the ball park ...... I have herd of people calling a changer and making arrangements for them to meet them in the bank where they exchange money ..... but with the bank we use they just do it for me ..... just I can't call any changer I want ..... but in the 4-5 years we've been doing this we are only talking about a few centavos difference in rate exchange .... and the security is well worth a few centavos when you are talking about cashing in $1200 or so ...... makes me feel safer anyway .....

I am very suspicious. Based on your description, in my opinion, you are an innocent participant in money laundering. I worked years ago as a consultant for the Bangko Sentral, which included recommending to the Governor and Monetary Board ways to force banks to account for foreign exchange transactions by both visitors and overseas Filipino workers.

The courier delivering the Pisos probably works for a merchant or businessman who is hiding profits from the Bureau of Internal Revenue. The USD is then smuggled out to Hong Kong or Singapore for deposit in an account. This is reason they can give you a better exchange rate. There are no transaction records. Several bank employees are probably involved. They are the nice, friendly ones who might know more about you that you would like to imagine

The bank employees became wise to Bangko Sentral sending foreign looking customers/agents as decoys. The next day, bank auditors would show up and ask for transaction receipts. Bank employees now prefer known customers to avoid this. The problem is not Bangko Sentral employees. It is the Bureau of Internal Revenue agents. There is only one way to provide proof of innocence and it is very expensive.

My recommendation is to use another branch. It could be the same commercial bank. The amount is small and not likely to raise a red flag, but it is best to be cautious. The extra few centavous are not worth it. An example of a big potato who got caught is LBC. They had a foreign exchange remittances license. Filipina nurses and medical doctors in the United States would give them dollar cash for their families to receive in pisos. The problem was the dollars never made it back to Bangko Sentral. LBC lost their license. They are barely surviving on shipping balikbayan boxes. If you are in Canada or the US Mainland, my recommendation is to use another service like Forex.

Edited August 4, 2012 by JJR

[Mike S]

Edited due to the concerns of another member

And with what JJR said .... I don't deal with anyone but a bank officer ..... if I have to deal with a teller I'll go to a different bank ..... most tellers are as dumb as a box of rocks and only programed to except deposits and make out slips ...... anything more complicated you need to use a bank officer anyway ...... IMHO ..... by the way no different that in the US when it comes to tellers .... they aren't paid enough to be smart ..... :hystery: :hystery:

Edited August 4, 2012 by Mike S