[merged] Improving Peso-Dollar Exchange Rate

**Isuzoom** · January 3rd, 2006 12:43 PM

Simple supply and demand lang. No need to tell the the country all of these because of Gloria Macapagal Arroyo efforts. She can't even handle her Home economics.

**mazdamazda** · January 3rd, 2006 12:56 PM

why do people always give political color to the things happening here?

try reading the business section instead of the front pages. instead of being always pro or anti GMA / governement we should already look beyond that if we want to grow up.

**akoyon** · January 3rd, 2006 01:50 PM

yup i agree 100% mazdamazda

**mfo** · January 3rd, 2006 01:56 PM

Originally Posted by mazdamazda

why do people always give political color to the things happening here?

try reading the business section instead of the front pages. instead of being always pro or anti GMA / governement we should already look beyond that if we want to grow up.

Correct ka ulit Dyn

**Mguy** · January 3rd, 2006 02:19 PM

Tama si Isuzoom on one thing.

E-VAT reduces foreign borrowings, thus lowering the demand for dollars.

I do have praises on the economic team of GMA. Teves and Favila are doing a great job in spite of pessimistic people.

**gearspeed** · January 3rd, 2006 02:24 PM

May napanood ako sa news tungkol dito sabi nga nun dahil sa OFW ito hindi rin maganda yun kase ibig sabihin marami ang nagOOFW instead na magtrabaho dito.
Sana magimprove na ang economy para hindi kami mag U.S...

**fourtheboys96** · January 3rd, 2006 02:51 PM

kung anu man reason ng malakas na peso eh sana naman may effect ito sa pagbaba ng presyo ng gasolina considering other factors like lowering of the crude oil prices in the world market and the decrease in the demand for oil products from the temperate countries in the coming months (spring to summer).

**basti08** · January 3rd, 2006 03:00 PM

with the implementation of EVAT... our peso will recover.
nakita naman natin yung effect nung last quarter dba. well just have to wait and see, if its as good this year. but im positive, our country will recover.

**niky** · January 3rd, 2006 03:01 PM

While OFW remittances do play a part in all of this, I do agree with mazdamazda... the peso-dollar rate started improving as soon as the E-VAT law was put into effect. This is one reform that foreign fund managers have been asking for, and it definitely does improve the fiscal position of the government.

Despite the war in Iraq, the Dollar is still a stable currency. The fact that the Philippine Peso is gaining more ground against the Dollar than OTHER currencies (some of which are losing ground) is bigger news than the fact that it is gaining ground at all.

With the improving peso-dollar exchange, there is hope that our debt will ease. If we can get to the point Brazil is at now (the ability to pay off debt), then I will be very happy.

The downsides. People feel the crunch of gasoline prices and E-VAT. What does this mean? They spend less. This has been the least crowded holiday season at the malls in recent memory. I was dumbfounded by the fact that I could actually park at the malls, and that I didn't have to stay in line for very long. Word is, everyone was at Divisoria.

The fact that more and more Filipinos are becoming cost conscious merely increases the strength of the peso. People may be pessimistic about things with the rising prices, but a stable peso means that those rising prices aren't going to move as quickly as they used to.

One big downer is for business people who find that less and less people buy their goods. Sad fact is, this economic "recovery" is very bad for a number of businesses. But as we are in the business of education, my corporation isn't badly hit. In fact, we don't even feel it.

I do hope, though, that if the peso is strong enough to gain more ground, the government will cap it at 50. I think that's a strong enough psychological support level... one that people were talking of before the peso fell through the floor a couple of years back.