The Philippine peso: Strongest currency in Asia! GOOD NEWS

[peewee_toot]

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kanus.a kaha ta makakita og mulihok jud nga presidente...cge lag tabi. asa na kaha iyang mga pasalig

naah! ayaw na lng mo ana niya. maayu lng na cya sa showbiz...

[Rance]

P43.420 = USD1.00
Business - INQUIRER.net

[masakiton]

ka dugay na ani nga article/thread oi hahaha
ma lain jud ang mga noy2x crusaders (gloria haters)

[Infinity1101]

Peso to hit a high of P37.5:$1 - HSBC economist
abs-cbnNEWS.com
posted 02/16/2011

MANILA, Philippines - British banking giant HSBC expects the peso to hit a high of P37.5 to a dollar this year and further strengthen to P35.50 in 2012.

This forecast is more optimistic than the Bangko Sentral ng Pilipinas's official P45-P47 foreign exchange projection for 2010, but Frederic Neumann, managing director and co-head of HSBC's Asian economic research, pointed to the surge in dollar inflows as his key factor.

Neumann said the dollar inflows, which grew steeply last year, will continue to be robust as optimism of portfolio investors on the country's growth prospects prevails.

"If the economy is growing, then the foreign exchange rate should reflect it," Hong Kong-based Neumann said in a press conference on Wednesday.

Last year, the economy, measured in terms of gross domestic product, grew by 7.3% , the fastest pace in about 3 decades.

The central bank earlier reported that net inflow of foreign portfolio investments reached $4.6 billion in 2010, up by more than 12 times the amount recorded in 2009.

The dollar inflows helped increase the country's gross international reserves to a historic high of $62.07 billion last year.

Rate hike, inflation

Nonetheless, while the Bangko Sentral ng Pilipinas leans on a stronger currency to combat rising inflation, some interest rate hike is needed, Neumann said.

"The earlier (the rate hike) the better" he said, adding this should be a preemptive measure against the structural increase in inflation linked to Asia's robust growth.

He projected that the BSP's overnight borrowing rate would rise from a record-low 4% to at least 4.5% through this year and further to 5.25% next year or for a total of 125 basis-point hike through 2012.

He is expecting the BSP to start its cycle of rate tightening this year with a quarter-percentage hike during its policy rate setting on May, to be followed by a similar rate hike by the third quarter.

However, a rate tightening by next month would be better as the Philippines was now the only country that had not raised key interest rates since a tightening cycle started across Asia-Pacific late last year.

"The Philippines is now the stand-out in the region," Neumann said. "Everybody is behind the curve but the Philippines hasn't moved yet," he said.

The potential hike in interest rates, he said, would only be a "normalization" of monetary policy and not even a tightening. At current levels, he said there's a 270-basis point differential between the BSP's policy rates and the "neutral" rate or the perceived level where interest rate neither accelerates nor slows down the economy's rate of growth.

"So even if you raise by 25 to 50 basis points, that's just bringing (interest) rates to neutral," Neumann explained.

He said rising inflation was a cause for concern, which means that central banks must act sooner rather than later. "Monetary policy works best if used preemptively."

[Rance]

We might have a strong currency but the governance is weak!

[Rance]

The peso is expected to trade at 45.50 to the dollar in the first quarter of 2012 as it fails to resist the current of eroding legal tender in Asia, according to DBS Group.

In its latest quarterly report on the global market outlook, the Singapore-based group said the local money “is unlikely to buck the trend of weaker Asian currencies” next year despite a relatively strong showing this year.

“The peso has been resilient compared with many of its Asian peers ever since the European Union’s sovereign debt crisis hit the region,” the financial services group said.

“This could be partly attributed to the fact the peso-dollar exchange rate did not follow its counterparts in trading to a new low after the global financial crisis of 2008-2009,” it added.

Peso seen at 45.50 to $1 in Q1 | Inquirer Business

[peewee_toot]

saving up my dollar. yes!

[iyeyasu]

We might have a strong currency but the governance is weak!

mao jud pero sometimes kay mag.agad baya ang currency sa pamalakad sa gobyerno

[Rance]

11/28/2016 1 US Dollar equals 49.82 Philippine Peso

Assuming that all remittances are valued in US dollars, the amount of increase in the peso value of these remittances in 2016 would be equal to about 1.2 percent of the total Philippine GDP. While an individual overseas Filipino workers (OFW) family might benefit from an 11-percent increase in their “salary”, the overall economy is not going to boom from increased OFW family purchasing power in 2016.

Theoretically once again, a weaker peso should increase price inflation and exporters should be able to sell more goods. However, the data does not support this reasoning. The facts show that the Philippine inflation not only tracks, but shows a statistical correlation between the inflation rate and the global oil price—not the peso exchange rate. Philippine inflation peaked near the same time that crude oil prices topped out in 2008. Meanwhile, the peso appreciated from 50 to 40 to the US dollar even as both oil prices and inflation were rising.

The peso has been depreciating consistently since 2013 but inflation has gone both higher and lower. During that period, oil went from $80 to $100 and down to below $40, which was tracked by the inflation rate—2 percent to 4 percent to 0.4 percent.

[<SMILE>]

This rise of the value of dollar relative with the Philippine peso is good for exporters but bad news for the importers,
we will need more peso to buy something outside but gaining something selling our products in US dollars.
This will also promote inflation if ever the industry that we presently have is dependent with outside sources to operate.