OFW remittances up

[uls]

http://www.abs-cbnnews.com/topoftheh...?StoryId=32757


Just a thought:

the more money they send, the stronger the peso gets.

the dependents here get lesser pesos for every dollar, so they ask for more padala...

So OFWs send more, making the peso even stronger...

and the dependents get even lesser pesos for every dollar...

so they ask for more...

the OFWs send more

peso gets even stronger

Is there something wrong with this picture?

[mazdamazda]

errr... the strength of the peso isn't just dependent solely on OFW remittances.

if that is the case, then we would have reverted back to the old 25:1 exchange rate of the ramos years since we are now experiencing the highest OFW remittances ever.

take into considering also debt sevicing, corporate dollar demands, import & export businesses, dollar speculation/hoarding, BSP intervention, investor money inflow & outflow, t-bill auctions, etc.

[uls]

ya i know... but OFW $ is a very big factor sa situation ngaun. along with overseas funds buying local stocks (hot money) and obedience to the IMF (more taxes)

[uls]

ya i know... but OFW $ is a very big factor sa pag lakas ng peso ngaun. along with overseas funds buying local stocks (hot money) and obedience to the IMF (more taxes)

[FrankDrebin]

I believe M2 is right. OFW remittances is just one of the factors of the current Peso value. For it to become a BIG factor, there must be a 10-20M OFWs sending home a minimum of $500-$1000K monthly each. Do the math. ;)

[oldblue]

http://www.abs-cbnnews.com/topoftheh...?StoryId=32757


Just a thought:

the more money they send, the stronger the peso gets.

the dependents here get lesser pesos for every dollar, so they ask for more padala...

So OFWs send more, making the peso even stronger...

and the dependents get even lesser pesos for every dollar...

so they ask for more...

the OFWs send more

peso gets even stronger

Is there something wrong with this picture?

something is really wrong if consumer prices here dont drop, or particularly, imported goods or goods dependent of imported raw materials or equipment. the problem is most imported goods are old stocks so traders can't lower them.

heard from the news before that since January, the Philippines has the highest rate of deposit compared to other Asian countries. instead of spending, they're holding all their money in banks. This is like money hoarding and it can hurt us in the long run even with stronger peso.

one reason siguro, peso is getting stronger and we're keeping our peso. dollars accounts are being converted to peso as we speak, simply bec. of the same reason above.

pakiramdaman talaga ang nangyayari. if only the govt. can encourage the business sector to lower down their prices so as to normalize cashflow.

but since summer na, pinoys may want to resume spending on travel. with stronger peso, more value for money spent on travelling abroad or local tourists hotspots.

[badkuk]

i'm not surprised; might as well send as much as they can before the dollar dips down to 50

i also read somewhere that the US is borrowing and issuing bonds heavily; lots of dollars floating around

[chua_riwap]

Come July, IMPEACHMENT time.....again.

Let's see if the Peso will sustain it's strength against the green bucks.

[yebo]

not a BIg factor? so it's just a small factor then? so if you take away even just the US$917M sent by OFWs in january (total for 2005 was US$10.7B) it does not make the big difference? so let's assume we did not send that, what do you think would have happened? still same, still strong peso? it's simple math, export receipts - (import receipts + debt service) = foreign currency deficit!

[van_wilder]

TOTAL FOREIGN BUYING : P 873,626,565.00 << one day (mar 14)

or around P17B in a month sa PSE pa lang... so malaki rin... there's no big or small factor... its nothing but another factor... its also A FACTOR...

without ofw remittances peso would be weaker, without pse investments peso would be weaker... without this and that peso would be weaker...

everything now is a factor, which is better... kasi kung isang bagay lang ang factor... then if mawala yun crash ang economy natin...