The Losing Power of the Pinoy Peso-- Again!

**CVT** · October 30th, 2008 10:45 PM

It is panic.

Time out. Everyone should face the wall for 15minutes. The fundamentals are still there....

6909:seehearspeak:

**tidus1203** · October 31st, 2008 09:49 AM

Don't worry too much about the Peso, its just money flows nothing we can really do if people want to sell it. We have to be thankful wala paring massive layoffs unlike sa US. Now that would be the real disaster.

**uls** · October 31st, 2008 10:58 AM

thing is, we dont know how long this slump will last

for now, kaya pa ng mga businesses dito hindi mag lay off...

pero i heard meron mga nag downsize na

**Gen. Miting** · November 1st, 2008 05:26 AM

maybe we should wait the $dollar bubble to burst and then people will come running again to dirt cheap oil.

same trends, same hype.

my take on this, if we're not directly affected, dont get too concerned. the P48-50 = $1 shoot up cant affect us as of the moment bec. businesses still have old inventories bought at a lower exchange rate.

now why am i confident that local businesses still have old inventories, sales has been on a slump since the oil price hikes happened. some greedy businesses may pretend that their inventories are new but who are they kiddin' really? there is low demand in oil (even if oil dropped to its lowest), hence low consumer spending. if we are really to read the minds of businessmen these days, all they want to do is to get rid of their old stocks.

if you want to see the signs of the times, if you see container trucks from 10pm onwards or between 11pm-2pm (non-truck ban hours) congesting our roads lately, then new inventories are coming in. pero kung maluwag ito, no imports ngaun.

now for those who are travelling, yan puwede tumabo ngaun. kung dati sa halagang 16k makaka 4-days 3 nights ka sa HK, ngaun P20K+ na siguro pinakamura. but like i said, even local travel is down nowadays, and that is plain in simple peso transactions lang. sa news pa lang ngaun week na'to , there is %10 drop in passengers going to their respective provinces this upcoming Undas season.

the P50 to P51 = $1 is useless if there will be no exchange in money or transactions. and that is what is exactly happening ...

the P50 = $1 is attractive to foreign tourists/investors though bec. they'll get more their dollar's worth. siguro monitor na lang natin yun influx ng tourists ngaun, if there is a spike, then thank god. that will initiate some spending in some sectors.

**jpdm** · November 2nd, 2008 08:39 AM

Manila Bulletin

[SIZE=3]Business BSP eases dollar loan requirements until March[/SIZE]

By Des Ferriols
Sunday, November 2, 2008


The Bangko Sentral ng Pilipinas (BSP) has agreed to relax its asset cover requirements for dollar loans until March next year in an attempt to ease the demand for dollars and stabilize the foreign exchange rate.

....the strong demand for dollars in the open market has been causing the peso to plummet by as much as 19 percent so far this year, with no relief even with the inflow of remittances from overseas Filipinos. To relieve this, Tetangco said the BSP is allowing the relief for the purposes of calculating the asset cover.

“Basically we will assume they have no losses until March,” he said. “But that’s only as far as unrealized losses are concerned. When they sell those assets eligible as FCDU cover, then this relief does not apply.”

Under the revised guidelines, Tetangco said net unrealized losses from marking to market of financial assets or liabilities in the FCDU book would not be deducted from the asset cover for a limited period until March 31, 2009.

By doing this, Tetangco said banks would no longer be pressured to keep buying dollars from the open market just to comply with the 100-percent cover requirement since the decline in asset values would not be deducted from the books anyway.

“This should help stabilize the foreign exchange market,” he stressed.

Another 'extraordinary move of BSP to protect to peso....

**uls** · November 2nd, 2008 02:45 PM

that's just to reduce demand for dollars by banks

the BSP just suspended mark-to-market valuation rule till March

so now, mark-to-fantasy muna?

hehe

**tidus1203** · November 2nd, 2008 05:48 PM

Hay nako, that is why hindi ako bilib sa doctorate in accounting degree eh

There are some funny accounting going on with the books of these people and make it harder to deal with them since its not transparent enough what the counterparty is holding.

**uls** · November 2nd, 2008 06:59 PM

haha

it's like meron ka year 2000 na civic

may market value yan for 2008

but since the mark-to-market rule doesnt apply

you don't have to value the civic at 2008 market value...

hmmm... 2003 market value nalang pwede? 2005?

Kaw bahala...

mark-to-fantasy hanggang March

**jpdm** · November 4th, 2008 08:23 AM

why not control the exchange rate again?

**tidus1203** · November 4th, 2008 09:56 AM

We all know pegging the currency reduces liquidity and limits transparency. And the government is not rich enough to peg the currency. China can peg their (although its now in a limited float after pressure from EU and US for currency manipulation) currency since they have ample money to both defend and debase their currency from speculators. If George Soros made a speculative attack on our currency, our government can't even sell enough USD to keep the peg