The Losing Power of the Pinoy Peso-- Again!

[tidus1203]

I am not saying we should stop the printing money, I was just saying that hyperinflation is the consequence of too much printing. The US is dangerously going down the Zimbabwe path. Printing money to pay down debts.

[Gen. Miting]

how about the yen? the host country is progressive and yet their money is like paper money kung bibili ka lang ng isang item, dami mo dala

surely, we can't compare the US of A to Zimbabwe. lamang ang US sa lahat ng bagay sa Zimbabwe. citizen-wise wala ng binatbat ang Zimbabwe dito.

[jpdm]

Well, let the peso slide further...

so that exporters will earn more...

OFWs will earn more..,

Local manufacturers using local materials will earn more....

A depreciated peso will discourage massive importation and will compel pinoy to use more local products and raw materials...

[True Faith]

Well, let the peso slide further...

so that exporters will earn more...

OFWs will earn more..,

Local manufacturers using local materials will earn more....

A depreciated peso will discourage massive importation and will compel pinoy to use more local products and raw materials...

Agree with these.

The real drivers of the economy are the exporters (that uses more local materials) and OFWs.

Let the importers pay more for their imported merchandise...perhaps to force them to source their materials locally.

In the first place when they import, they are not helping per se the economy.

A weak peso will forced OFW to do the same buy more local goods with their additional peso...

[jpdm]

The peso is expected to hit 50 pesos per dollar at the end of this year.

Import dependent industries will be hardly hit by a weak peso.

Oil prices might follow.

Manila Times
November 14, 2008

Lower Growth Forecast Hits Peso, Stocks

THE peso fell back to the 49-to-the-dollar level as high remittance inflows failed to offset lingering risk aversion, traders said.

At the Philippine Dealing System, the local currency closed to 49.495 to the greenback on Thursday from 48.990 the previous day. Trading volume jumped to $814.520 million from $584 million previously.


“The dollar is strong due to the redemption period in the US, [wherein] mutual funds should be liquidated until November 15,” Ayes said. “The weakness of the peso is not as bad as the other currencies,” he said.
He said the local currency would weaken further and touch the 50-to-a-dollar level.


In a note to clients, Metropolitan Bank and Trust Co. (Metrobank) said it [SIZE=3]revised its peso forecast to 50-to-a-dollar this year, [/SIZE]better than the previous 51-to-the-greenback. For [SIZE=3]next year, it sees the local currency averaging 52-to-the-dollar,[/SIZE] stronger than its previous forecast of 53.

Metrobank said the peso, however, would recover should the lowering of interest rates see increased dollar inflows into stock and fixed income markets on the notion that credit remains loose.

“When that tide turns and risk aversion lifts, all those dollars receding away from us can come crashing back in a dollar tsunami of sorts, lifting the peso back to its 2007 performance,” it added.-- Maricel E. Burgonio and AFP

[True Faith]

It seems the peso is going beyond 50 to a dollar at the end of the year....

Imported products will definitely go up....

Goodbye wasteful consumption....

[tidus1203]

When the Peso was at P43 to the USD a liter of gas reached near P60. Now that the Peso is nearing P50 to the USD a liter of gas is P42. That is called economic recession folks. Trash currencies down, commodities down, major currencies UP!

[uls]

Standard Chartered outlook on Asian currencies (ex-JPY)

In our view, the implications for AXJ currencies remain clear. They will weaken further across the board, albeit for different reasons. Current account/trade deficit currencies such as the Korean won (KRW), Indian rupee (INR), Indonesian rupiah (IDR) and the Philippine peso (PHP) will weaken further as long as the credit crisis is ongoing and foreign investors continue to unwind long positions in local stock markets. Meanwhile, small open economy currencies such as the Malaysian ringgit (MYR), Singapore dollar (SGD), Thai baht (THB), Taiwan dollar (TWD) and even the Hong Kong dollar (HKD) will weaken further as growth will slow sharply and authorities are becoming more tolerant of modest currency weakness.

[tidus1203]

May EX-JPY pa sila ah Of course, IMO the JPY is the best currency in an economic recession worldwide.

[uls]

yep... Yen rulez