Wow, the dollar to Philippine peso currency trading roller coaster is still trying to compete with the buses of Cebu. The dollar has breached the P44 barrier this month then quickly headed south for those of us converting US dollars to Philippine peso. On the 17th of October 2011, it appeared the dollar was onc eagain headed below P43.0. However, by the end of the week the peso was down sharply. The fall was so sharp it left the Peso loosing value over the week. I saw one article going so far as to say it was a net loss for the peso this week. There are too many benefits with a lower peso value for me to consider it a loss. This chart shows the change in the dollar to Philippine peso for the last 30 days.
If you sent $2000 to the Philippines and converted it to Philippine Peso the difference in the amount you recieved is about $46 between the low and the high of P44 and P43. I can go to the BBQ by the bay in Bogo City about 6 times on that amount of money. I could take the family to Capitancillo for the day on that amount of money. I could also pay for my room and one meal if I took a trip to Cebu City on that amount of money. I could also spend a day on Bantayan Island for that. I could see my doctor four times for this amount. It would pay for about a 1/5 of my electrical bill for a month. What I’m getting at is the amount of money is significant.
While the dollar to Philippine peso rate of exhange does not directly effect the cost of living in the Philippines it does affect how much money an American has to meet those cost. A guy living on $1000 a month in the Philippines is impacted harder than a guy living on $3000. Though the loss is higher for the expat with the higher income he has more money to meet his basic needs. The dollar to Philippine peso currency trading rate directly effects ones opportunities while living in the Philippines.
President Aquino’s announcement of his economic stimulus plan seems to be the main catalyst for the fall of the dollar in the middle of the month. Once again, Greece comes to the rescue of the dollar. It isn’t just Greece but the outlook for economic growth in most of Europe that is sending investors back to the dollar.
The outlook for the Philippines is weaker than it was a few months ago for the same reason. That is exports to Europe are expected to fall and exports are already down to lowest levels in two years. However, growth for the Philippines is not bad. It is projected at 4.4% for the rest of the year and falling further to 4% for 2012. Of course, projections could change but that is what they are for now. The short term outlook for the Philippines is brighter than that of the USA however the economic conditions has more room for improvement than the USA does too.
I see the Euro Zone problems as short term relief for Americans. The USA has got to return to internal growth when the rest of the world is also having problems. The dollar to Philippine peso currency trading rate is not usually this volatile.
Filed under: Dollar To Philippine Peso
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