Trending Dollars to Philippine Peso
I have added the first chart for Dollar Vs. Peso trends. The chart doesn’t show much of a trend for now as the Dollar Vs. Peso value has seen very little movement. I will be adding more charts and making the first one more meaningful over time.
The dollar remains strong against the Euro and the British Pound but has slipped a little against the Japanese Yen over the last few months. Though the dollar started a steep decline in December against the Philippine Peso it has now leveled out and showing very little change.
I think this is because the Philippines Central Bank has hinted at lowering of interest rates may be in order. They are however, taking a very cautious approach as double digit inflation was present for part of 2008 due rapid growth in the Philippines and Asia.
Many government officials have been speaking of the expected recession that is coming to the Philippines. So far though, only a slowing of growth has been reported and the economy is growing but at a slower rate.
The slow down in the west though is likely to reduce exports and eventually may cause the recession that many expect for the Philippines. I hope not, as the Philippines really is poor enough without adding more misery to the people of the Philippines. I say misery but most Filipino seem to be happy, with what ever it is they have.
The dollar should loose some of its value once Obama’s stimulus package is approved. I’m surprised it has not already caused a devaluation of the dollar as markets generally take this kind of information into account long before it actually happens. Perhaps the other economies will do worse than the US, in part because of the loss of exports to the US. Or perhaps currency traders have not yet been convinced that Obama can get his spending package approved.
I think he will, his power of persuasion seems to be excellent. Many US legislatures had reservations about the release of the rest of the TARP funds intended to keep banks afloat but after talking with some of those that objected, they are not on board with him.
Filed under: Expat Finances
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