A couple of months ago I wrote that I was afraid the dollar was about to fall against the Peso. I was right, it was pure luck but bad luck for me. However, it didn’t fall much. It went from about 45.5 peso to 1 USD to about 44Php to 1 USD.
Considering it was at about 39 Php to 1 USD when I first arrived here in February of 2008, the trend is clearly upward. The highest I’ve seen it was around 55 Php to 1 USD.. That was probably back around May of 2006.
At this time the exchange rate is 46.6 Php to 1 USD which is good for me. That’s about a 10,000p increase for me or about $200 a month. I don’t want the Philippines to do poorly, but I hope it goes back to 55Php to 1USD, not because of a weak Peso but a strong Dollar.
 | More up to date articles regarding the peso to dollars rate of exchange can be found at dollar to Philippine peso. |  |
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Tagged with: Expats • Living In The Phlippines
Filed under: Dollar To Philippine Peso • Expat Finances • Living In The Philippines
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hi there! i like this post as i share a common interest, i am a filipino but i trade dollar to peso and vice versa as a way to earn from my money instead of putting it in a bank. i would appreciate it very much if you could share more on the peso-to-dollar trend. =)
Hello Kara,
I will do all I can but I think you would know more about it than I do.
As i do research on this, I often think about the money traders here and try to understand their business.
What part of the Philippines are you in? I am in Bogo City.
I hope to hear from you often!
hi there kara & joe,
the dollar to peso trade interest me… Can you elucidate me further on this?
im a metallurgist by profession & im leaving here in iligan city..
thanks
Hi Olivia,
I would love to hear more from Kara myself.
I would also like to hear more about your work as a metallurgist.
I write often about the dollar vs peso, while I do have a degree from a four year uni in accounting, I’m by no means an expert. Economics and finance has fascinated me for a long time I sometimes get a headache while trying to figure it all out. Its really complicated stuff and even when someone’s logic is right on, the outcome of the markets can differ fastly from what one would expect.
Hey Kara and Joe,
The peso rate is not a fixed nor floating rate at this point. Its what you call a negotiated float, because when the range on a day’s trade goes beyond the fiscal projections of the government, it intervenes by either selling directly to the market to halt the depreciation, or buys does money market operations to mop up excess peso liquidity. So its complicated.
However, expect the dollar to appreciate in the short and middle term due to decoupling in the financial markets and maybe some drop in foreign exchange remittances of overseas filipino workers due to the economic crisis.
Recently, the phil. government posted a 34B surplus, so it may relax a bit and let the peso float to the 48-49 level in the medium term. It would be good for exports too, although phil. net exports (less imports) is a measly 0.4%.
By the way, I am an expat doing financial lectures in the asian circuit.
Hi Ted,
I hope you’ll stop buy and provide more insights.
Ted, is there a link or other source where on can get information on what the Bangko Sentral is doing? I have their website. Perhaps I should read more on their monetary policy page.
I noticed that the dollar attempted to crash vs the peso yesterday but there was heavy trading and it ended up virtually unchanged.
The central bank has been buying up dollars yesterday to keep the price up? Any data beyond speculation, be it speculation that makes sense or not. Hope you visit often!
hi joe…im new here but i find interested…hope to have friends here too
Hello Mary Jane. I hope you come around often!
sorry guys…got cut off for a while..well, the peso is projected too move towards the 50-1 level in the coming weeks / months, because foreign remittances from overseas workers will become really weak due to the current economic crisis. This sector accounts for almost 10% of the country’s GNP, if i’m not mistaken. But with the 90% remaining portion also contracting substantially, expect a real good pressure to depreciate. Im betting on US$ now more than ever.
Metrobank of the Philippines projected it to go to 53 by year end. There are a lot of reasons why the Philippines would like to see a strong dollar and they Bangko Sentral ng Pilipinas can influence that, I don’t think they can outright control it at will.
I’m hopeful that the dollar will climb against the Peso but I’m less sure of it than I was a week ago. The only way it affects me is on my standard of living. If it goes back down to 39.xx I start getting hungry but that could be a good thing too.
The problem is if it goes too high they will raise prices again. Even though they never lowered them when the rate dropped from 55 to 39. They even marked up prices on store shelves for items that had already been purchased at a lower cost.
Like a big giant milking machine for money.