I really wonder if it's true as some suggest: that big money players in The Philippines do this occasionally for a profit? They get a couple billion pisos in the bank, somehow strengthen the value of the piso a whole bunch, and then trade in all their pisos for dollars as soon as a certain level is hit.Well, those of us who are paid in dollars and buying in pisos obviously aren't liking it much.
7 comments:
So - how many pesos in a dollar now?
Forget it. I am again caught red-handed showing a dull or non-existent brain.
I believe it is the weakening of the US dollar. If you look at the Australian Dollar, you will see the exact opposite. Philippine currency is traded openly and as you imply manipulating the market may be possible, but highly unlikely. If they strengthened the value of the peso, then it should be reflected in all the world's currency, not just the US Dollar. The US Dollar has weakened worldwide, and this is just a reflection of that fact. It is also a believed myth, that the peso loses value during Christmas because of the influx of OFW remittances. I have challenged anyone to show me on a valid graph, that such a statement is even remotely true. It has not happened yet.
Not your fault mom. You probably inherited that from your son's side of the family.
Anon,
I must admit that I didn't check too far... only against the British Pound, to which the dollar is holding steady. However, against the Euro, Yen, and Baht... the dollar has decreased as well.
I probably should stop using the British Pound as my "official" benchmark for dollar performance in the world... switch to the Euro instead.
hi jil, my girl friend told me the closer it gets to christmas the lower the peso will go. she said it is because so much money is sent home for the holidays. just a thought, i dont know for sure.
g,
Based on this 5-year graph of the PHP exchange rate versus the dollar, I cannot make any reliable inferences about an annual cycle to the piso.
However, I can say that (during the years 2005, 2006, 2007, and 2008... but not 2009) sometime in the second or third quarters of each year, the general tendency of the piso is to move upward, and at the end of the year, it's tendency is to move downward. However, that is a very supposititious inference to make on a currency that has been quite mobile against the dollar in the last 5 years for many various reasons.
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