Originally posted by superdude
actually bumaba ang dollar... baka nga bumaba pa sa P56 eh... check niyo... kasi ako everyday ko chinecheck kasi kailangan ko ng dollar lagi... christmas kasi eh, maraming remittance...
kaya bumababa dollar ngayon kasi bagsak din ang economy ng amerika dahil cgro sa war against iraq.mas maganda na takbo ng euro ngayon even the BSP have euro and yen reserve na hinde nalang puro dollar reserve.
Hey Superdude,

I beg to disagree to your conclusion that USA's economy is down and certainly not because of IRAQ War. As a matter of fact, USA has maintained economic growth as projected. If you look closely and analyze it, you will see how advantageous it is to the US economy when lowering the value of the dollar.

As you can see the value of the dollar is determined by confidence. THe reason for the dollar decline is mainly because of the trade deficit between the US and the rest of the world of about $600Billion. Meaning, the US has been buying more stuff from the rest of the world while the world hasn't been able to buy US-made products due to high dollar value.

The devalued dollar post its advantage to American Companies since this favors EXPORTING of American GOODS since dollar would be cheaper like in Europe for example. While european in return will have difficulty exporting their products since EURO is expensive.