I am wondering why the exchange is so bad?

[magdasal 19]

LOL! it's the same thing! it means peso is winning versus dollar.. if you analyze it, when US economy goes down, philippine economy goes up.. don't confuse yourself..

and it's actually not "less buying power"! if you have an economy class during high school or college, you would know that when the economy continues to go up, it will result to prices going down..

a lot of filipinos complain when they send money back home and they see that the peso conversion is very low.. what they don't understand is-- it's a very good thing for the philippines!

PS: i work at a remittance center here in the US so i know..

Well, somebody is confused, but I don't think it is who you think it is...

Edited September 4, 2010 by magdasal

[envy_me 18]

seriously?!? lol

.

Edited September 4, 2010 by envy_me

[DaRoq 36]

Seryoso ba kayo? (are you people serious?)

In simple terms, exchanging less of any currency for the dollar is always better. As an example, you're an affluent Filipino who wants to go to Las Vegas to gamble away your money. You want to carry the equivalent of 10,000 USD cash, so you withdraw the money in Pesos. In the example below, which is a better proposition?

10,000.00 USD = 444,599.99 PHP

United States Dollars Philippines Pesos

1 USD = 44.4600 PHP 1 PHP = 0.0224921 USD

10,000.00 USD = 500,000.00 PHP

United States Dollars Philippines Pesos

1 USD = 50.00 PHP 1 PHP = 0.02 USD

With the lower Peso rate you will need PHP 55,400.01 (1,246.064 USD) less.

Since I'm not an Economics major, I don't know how the lower PHP:USD would affect the Philippines on a macroeconomic level. But it does seem evident that it would be an advantage to the Filipino when buying US dollars.

[envy_me 18]

Seryoso ba kayo? (are you people serious?)

In simple terms, exchanging less of any currency for the dollar is always better. As an example, you're an affluent Filipino who wants to go to Las Vegas to gamble away your money. You want to carry the equivalent of 10,000 USD cash, so you withdraw the money in Pesos. In the example below, which is a better proposition?

10,000.00 USD = 444,599.99 PHP

United States Dollars Philippines Pesos

1 USD = 44.4600 PHP 1 PHP = 0.0224921 USD

10,000.00 USD = 500,000.00 PHP

United States Dollars Philippines Pesos

1 USD = 50.00 PHP 1 PHP = 0.02 USD

With the lower Peso rate you will need PHP 55,400.01 (1,246.064 USD) less.

Since I'm not an Economics major, I don't know how the lower PHP:USD would affect the Philippines on a macroeconomic level. But it does seem evident that it would be an advantage to the Filipino when buying US dollars.

exactly!

people should know the meaning of the word "DEVALUATION"!

[A and T 82]

It is bad, I just sent money via moneygram on Saturday and the exchange rate was only 43 peso to the $

[tallcoolone 102]

Obama........

[Joan >3 Bob 20]

If 1 USD = 50 pesos = 1 large bottle of Red Horse

If 1 USD = 43 pesos = 1 small bottle of Red Horse

[jom 4]

The lower the exchange rate the better!!!

[Joan >3 Bob 20]

The lower the exchange rate the better!!!

Well this Depends upon which side of the exchange rate your are at!

[tallcoolone 102]

Well this Depends upon which side of the exchange rate your are at!

For me the higher the exchange rate the better.

I have a cousin and a buddy headed to PI next week, to wife shop.

I can promise they want the exchange rate to be as high as possible to mazimize the value of your US Dollar

[Joan >3 Bob 20]

For me the higher the exchange rate the better.

I have a cousin and a buddy headed to PI next week, to wife shop.

I can promise they want the exchange rate to be as high as possible to mazimize the value of your US Dollar

I am with you on this one Bro! Been there done that. No matter what Ch****s thinks.

[rlogan 2,036]

It can be a mistake to post on subjects you have a publication record with in your profession. For one thing, you use terms of trade that have precise meanings, but they mean something else to non-practicioners. I'll try to avoid that problem

It is very simple. All else the same, when dollars are printed at a faster rate than pesos, the Peso rises in value relative to dollars. That is by far the major determinant of changes in exchange rates between the dollar and peso, or the dollar and anything else.

What is going on now with the international banks and corruption of our political systems worldwide disgusts me to the point where I can no longer watch. What the banks want is endless government borrowing, which the banks finance by literally printing the money.

Ask yourself this question: If the law allowed you to print money in your basement, but imposed the strict condition that the only thing you could do with the freshly printed notes was loan it to the government - would this condition bother you very much?

Instead of printing the money to buy your shoes, bread, and beer, you have to buy treasury bonds. Every quarter when you earn interest or every time a bond matures, you are free to spend that profit as you wish. It's just the money directly from your printing press you are not allowed to run to the store with.

You can, however, print the money and buy a bond and then sell that right away to someone else. This cash you have now was not what you printed, so you can spend that cash as you like.

That is the simple nature of the Federal Reserve Banking System in the USA. The "Federal Reserve" is just a printing press and a store-room for money. Look at the dollars in your wallet. They are "Federal Reserve Notes". The Federal Reserve is just that very printing press, and it is owned by all of the banks in the U.S. in proportion to their size. If bank X is twice as large as bank Y, it owns twice as much stock in the Federal Reserve.

That is why the U.S. Debt is related to the value of the dollar. Because the Federal Reserve prints the money it loans to the government. When the government is doing a lot of borrowing, the Fed is generally doing a lot of printing.

It is not an exact correspondence because the Federal Reserve is only one of many buyers of U.S. debt. It is entirely possible for U.S. Debt to rise without so much as one new dollar being printed if the Federal Reserve bought none of it and the Chinese or private investors bought all of it.

This is why the international banks love wars. They are the greatest impetus to government borrowing. The loans are in multi-billion dollar packages and are the safest form of lending since the government collects its money with lethal force. Lots of tiny little mortgage loans with risk are much less attractive.

The big picture is we have one giant war machine running that has very little to do with protecting us and mostly to do with banks profiting from lending money they print out of thin air, along with profits to the whole military-security complex. Simultaneously we have crackpot "ecomonic stimulus" borrowing that has mostly to do with directing government spending to financiers of political campaigns and other political horse-trading.

But - we're in a race with other equally corrupt and murderously stupid regimes. So you have the Philippines government out there borrowing, printing, and spending its graft and cronyist mony too.

That's why not much is really happening vis-a-vis the Philippines peso, but why both currencies are falling relative to gold, silver, copper, etc. - things you can't just print.