The Dollar is Ill
The value of the dollar continues to fall. Poor economic numbers, espeically around the jobless rate in the USA continues to send the value of the dollar down in exchange for Philippine Pesos and most other currencies.
The dollar is also falling against gold. The dollar made some gains for the first seven months of the year but it is doing horribly at the moment. I hope its short term and things will turn around soon but not much fact to base that hope on. There is some though. Some sectors are hiring again. Wall Street firms are hiring so it would seem investors are seeing gold in the future.
I have published a table that may shows how poorly the dollar is doing against other world currencies and compared it to gold as well. The Philippine Peso is up about 3% over the dollar in the last 30 days.
It is important to remember, that when the peso is up, that means the number of them you get per dollar you exchange goes down! The new page I created includes a table that will show how the dollar has done so far this year. It compares it to the British Pound, Japanese Yen, Euro, the Philippine Peso and gold. The dollar had been doing well so it is still up over the entire year when it is compared to most other currencies but it is down sharply over the last 30 days.
You can view the table by clicking here. Changes in the value of the dollar have a huge impact on expats. If you choose to live abroad, this becomes hugely important. For those of living in the Philippines, its a daily concern. Sometimes, I see expats spouting off that the Philippines government artificially suppresses the dollar. Is there every any manipulation? Probably, is it a major factor for those of use dealing in a couple of thousand dollars a month, no. One government or one institution can influence the rates to some small extent but a strong dollar is good for the economy of the Philippines. If your dealing in billions of pesos and dollars then a small amount of manipulation can go a long way. Most of the ups and downs in the Philippine Peso and US Dollar exchange rates are well justified.
Though, a friend did point out some strange numbers one weekend about a year ago. A quick jump and then fall back downward. And over a weekend too. There is some trading over the weekend and change in values but if I recall correctly, the central bank of the Philippines doesn’t trade on those days. At least, their official exchange rate doesn’t change on those days. I would love to know what caused that little hop but it might be best if I don’t know.
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