Dollar Weakens Against Many Currencies
The Federal Reserve Bank of the US has been buying up US Treasuries in order to put more cash into circulation.. This week, the Fed announced plans to buy up another 1.2 trillion in bonds and US government backed debt.
This is good news for home buyers but it could be bad news for the US expats around the world. The dollar slide significantly yesterday against the Euro, Pound and Yen. This is not a new policy as the Fed has already purchased about $450 billion… It is a much more aggressive stance though.
So far, the US dollar continues to do well vs the Philippine Peso. Though the strong upward movement we saw earlier this month seems to have come to an end for now. There has been a slow decrease in the value of the dollar for the later part of the month.
I have noted for sometime that a strong US economy might not be the best thing for expats. It is generally thought that the Philippines benefits from a strong dollar and that is probably the best hope for us expats living in the Philippines.
The central bank of the Philippines may take measures to strengthen the dollar here even when it is doing poorly in other locations. I’ve seen my monthly income fluctuate as much as P10,000 in the 13 months that I have lived in the Philippines. That’s enough to rent many decent apartments or homes here so it is a significant amount.
Many of the steps US Officials are taking now will likely lead to inflation at some point. Best think I can suggest is that when the dollar is doing well, have yourself some fun if you can. Leaner times are probably always just around the corner… I’m still hopeful that the dollar will continue to rise here but there have been several good economic numbers in the US in recent days. Its good for the US but more dollars flowing freely is not so good for us expats.
- Wall Street Journal
- Inquirer (Philippines)
Filed under: Living In The Philippines
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