OFWs hurt by strong Philippine peso

[Bears Grill]

OFWs are hurt by strong peso, but they're also one of the main drivers in this currency surge. It's a supply-and-demand thing. The more demand you have for a currency, the more that currency appreciates in value. Besides, if we judge the proper value of the peso using the Big Mac Index's Purchasing Power Parity (PPP), you can see that the peso is still undervalued; it's PPP is PHP 27.4 per dollar (see table below). It looks like peso has more upside to climb, but it's not usually the case that currencies will gravitate back to their parity level. The economy can (and always had) go through another bust phase. There could be a property bubble right now....who knows.

[kuyabog]

hahaha.. the Big Mac Economics ni bro ni Kuya JT?

hunahuna ra na inyo nga hurt ang ofw lageh..

as long as an ofw is earning abroad.. tuloy ang ligaya

and that is the reality..

[burn777]

hahaha korek!

pero luoy ang domestic helpers bro.. $400 max ra gud na sila.. and to think ang kamingaw.. ang pangpalit ug load para tawag..

[æRLO]

hahaha.. the Big Mac Economics ni bro ni Kuya JT?

hunahuna ra na inyo nga hurt ang ofw lageh..

as long as an ofw is earning abroad.. tuloy ang ligaya

and that is the reality..

I think your missing the point. People want to maximize their earnings, that is very fundamental. If someone who had been earning X amount of money that is valued at Y and Z, for the past longest periods--then all of a sudden, they earn the same amount of X, but this time it is only worth Y, then the maximum value of their earning is less than previous. Ergo, they are hurt by the new exchange. As @Bears Grill had suggested, it could be a property bubble, and that would mean if it is, the economy will have rough times ahead if the BSP re-values the Peso while there is no significant demand for the exchange of Peso from other currencies.

[Yanongmananagat]

Yes it does hurt us OFW's. Strong economy pero wala gyud ma batii sa mga katawhan, mahal man gihapon gasolina ug tanang palaliton. Ma 50 or 40 or ang gikahadlukang 30php to a $ is same ra gihapon ang sitwasyon so maayo pa ibalik sa 50php kay mao rang estoryaha.

[Yanongmananagat]

I think your missing the point. People want to maximize their earnings, that is very fundamental. If someone who had been earning X amount of money that is valued at Y and Z, for the past longest periods--then all of a sudden, they earn the same amount of X, but this time it is only worth Y, then the maximum value of their earning is less than previous. Ergo, they are hurt by the new exchange. As @Bears Grill had suggested, it could be a property bubble, and that would mean if it is, the economy will have rough times ahead if the BSP re-values the Peso while there is no significant demand for the exchange of Peso from other currencies.

Sakto ka bro, wa na kahibaw si kuyabog sa iyang gipanglitok. Unsa may tuloy ang ligaya nga ibutang tang 1T dollars sa una nga 50php ang palitan =50T comparar karon nga 40T nalang, Kadakong nawala sa mga OFW's. Imagine 10T ang nawala, Kadako na anag agi.

[Scott Bernard]

Yes it does hurt us OFW's. Strong economy pero wala gyud ma batii sa mga katawhan, mahal man gihapon gasolina ug tanang palaliton. Ma 50 or 40 or ang gikahadlukang 30php to a $ is same ra gihapon ang sitwasyon so maayo pa ibalik sa 50php kay mao rang estoryaha.

I work locally bro, akong ma feel nga nibarato na ang ubang commodity.... especially Gasoline and LPG. 5-9 years ago kay sakit kaayo sa akong bulsa nga tag 60pesos ang litro sa gasolina unya taas ang peso-dollar rate (approx. mga almost 55-57pesos) kay kada adlaw manko mo gasolina sa among sakyanan.

Karon lahi ra jud... nagka barato na ang fuel, nagka dako napod akong sweldo locally. Dili malikayan murag nigaan na akong paminaw. Nitaas na akong purchasing power...... Nitaas man gani akong purchasing power nga naa rako sa pilipinas nag trabaho.

Unsa pa kaha nang uban OFW nga e 2-5 times pa ang among sweldo compared sa inyoha.

hahaha korek!

pero luoy ang domestic helpers bro.. $400 max ra gud na sila.. and to think ang kamingaw.. ang pangpalit ug load para tawag..

Let's be honest with ourselves. I do not feel pity sa atong mga OFW nga domestic helpers and other below rate OFW who earns less than 1000USD. Mostly it is their decision ngano ilang gedawat na nga rate.

Naa man gud uban, getagaan ug maayong opportunity pag school sa una pero wala nag tinarong, nag bulakbol. Unya pagka abot sa panahon nagbasol2x na kay wala kuno sila ka human og college, mao makipag sapalaran nalang sa abroad bisan gamay ang sweldo.

[Xian120]

Yes it does hurt us OFW's. Strong economy pero wala gyud ma batii sa mga katawhan, mahal man gihapon gasolina ug tanang palaliton. Ma 50 or 40 or ang gikahadlukang 30php to a $ is same ra gihapon ang sitwasyon so maayo pa ibalik sa 50php kay mao rang estoryaha.

kong maabot nanag 50 bro by that time pwerte nang kalisud sa atong mga kababayan ana diri,. ang changes di mana mo effect gud dayon,

[jeremiahjay]

This is a very technical thread of which I would like to see technicalities of the topic..Something in depth but understandable to most people..Please share what are the:

1. Implications of the changes
2. Pro's and cons of the strong/weak peso
3. Sectors that are affected (aside from the "OFW") and the ones that benefited.
4. Over all outcome or possible outcome
5. What could be expected in the long haul.

Di lang opinions atong mabasa but "something more than what meets the eye"..

[kuyabog]

I think your missing the point. People want to maximize their earnings, that is very fundamental. If someone who had been earning X amount of money that is valued at Y and Z, for the past longest periods--then all of a sudden, they earn the same amount of X, but this time it is only worth Y, then the maximum value of their earning is less than previous. Ergo, they are hurt by the new exchange. As @Bears Grill had suggested, it could be a property bubble, and that would mean if it is, the economy will have rough times ahead if the BSP re-values the Peso while there is no significant demand for the exchange of Peso from other currencies.

How could I miss the point, especially when I am OFW all my life?

I have seen the forex dance the floor from 1:18 in fact.

But then this exercise is futile and pointless, for how in the world could I explain to you that forex fluctuations do not really hurt us as long as it is not 1:1? Anything more than 5 multiplier is good enough for the general OFW population..good enough, and reason enough to leave family, to find so-called better opportunities in foreign lands. It is all about the multiplier effect that fuels greed for some.. and real sacrifice for most.

It is only the thoughts of GREED that hurt, and as you explain in X and Y and Z, it may hold some moisture.

But then.. we are on different tracks here, and I never mean to proselytize here. We just have to agree to disagree then.

But the truth never needs any advocate to defend it.