Strong Peso vs OFW remittance

Philippines
November 4, 2012 10:13pm CST
Hello Lotters, I have read an article that next year the exchange of dollar to peso will be estimated to be at least 39Php=1$. Don't know if I should react happy because Every time this prediction is set, am uncertain if the economy is really growing, or it's just the numbers. they say in general that the economy is improving but to what extend and evidence that it is? the downside of this is lower remittance rates coming from the OFW's. for them this is a very alarming rate. even to us FIlipino online earners, it would seemed very huge lesser earned because of the strong economy. maybe economy will be great if Filipinos on all over the world would come home and do something with our country's job problems. right now, the option is abroad.
14 responses
@yahnee (1250)
• Philippines
5 Nov 12
I was actually worried when I read this article because this means that I am going to earn less. The dollars we earn from online earnings will be converted to a lesser rate which includes our myLot earnings. On top of that are the OFW remittances which is the hope of many Filipino families. I am not happy with this article since many of us will be severely affected.
1 person likes this
• Philippines
5 Nov 12
Hello Yahnee, Well this means it will take me three months more before I can withdraw my earnings from mylot or any other site. if only there are more investments in the Philippines, not only rooted to the NCR but also some provinces, because NCR is already over crowded, there should more and more jobs out there in the suburbs.
1 person likes this
@yahnee (1250)
• Philippines
5 Nov 12
How can there be investments in some provinces when they can't even fix the roads? The farmers cannot bring their produce to the market because of the lack of transport and good roads. Even children have to sacrifice a lot to go to school. That is why people dream of going to NCR thinking there are more opportunities.
1 person likes this
@romzee (938)
• Philippines
5 Nov 12
The sad thing is our peso is keep on appreciating in value viz a viz the dollar and yet no actual investment is going in our economy. Money from the west are being park here in our country because our bank interest is higher from their country of origin and also they are investing also in our stock exchange which they find attractive because of high yield thus all these keep our economy awash with extra dollar thereby putting an artificial pressure on the dollar-peso exchange rate.
@romzee (938)
• Philippines
5 Nov 12
Stronger peso doesn't equates that our economy is also getting stronger. Actually the strength of the peso is due to hot money inflow coming from foreign investors who are looking for better income outside their own countries. "Authorities are now struggling to control an inflow of capital that has pushed up the currency and threatens asset price bubbles. The central bank cut interest rates last month to deter hot money but economists say inflows will remain a problem, especially with the US Federal Reserve pumping money into its struggling economy, some of which will spill into attractive emerging markets." "Actually we are not the only nation here in Asia experiencing this phenomena. Other Asian countries are trying to control capital inflows too as they provide an oasis of resilience at a time when the European debt crisis is dragging heavily on the global economy. Singapore and Hong Kong, major destinations for foreign investors, have introduced property curbs to prevent their real estate sectors from overheating." -bworldonline. All these money are just temporary investment that foreigners put into the country because of our higher bank interest rates than the US and other Developed countries. They are also on our the stock markets, now the best performing in the region and other real estate investment scheme that push up prime real estate prices artificially. This artificial appreciation of our peso put pressure on the earnings of our poor OFW whose income diminishes and our exporters whose product are now becoming more expensive than before. I think this is doing more harm than good to our economy. Have a nice evening. Ciao!
• Philippines
5 Nov 12
Yeah, the foreign hot cash and investments are the ones mining the good economic turn in our country. A lot of foreign investors are making money in our stock market. It should be us Filipinos taking advantage of it. Sad thing is, a few people of our own people are investing in the Philippines making the strong economic resurgence of our country still being seen as somewhat of a disadvantage rather than an advantage. So we all should invest in the Philippines to benefit from our own economic development.
1 person likes this
• Philippines
5 Nov 12
Hello ROmzee, thank you for giving me this good information and shed light as to why we have such a high economy but lacks real investment. they've been using our banks for them to get high return and when they have gotten high enough the exchange of peso to dollar will go high again. probably all of this will be over once they have high enough money after saving for far too long. looks like they are playing us by the fool for real
1 person likes this
@romzee (938)
• Philippines
6 Nov 12
The government should take advantage of this situation and really push for more real foreign investment in our country. We need here more factories and more business establishment that will create real income, real economic growth and real job opportunity to our local workers. Foreign capitalist must be offered incentive to relocate their businesses here in the Philippines instead of just parking temporarily their reserve cash here which cause more harm than good to our vulnerable economy.
@louievill (18675)
• Philippines
5 Nov 12
this would also be a disadvantage for me, i do not go work abroad but my biz is export oriented so money will go down the drain, but come to think of it, a strong Philippine economy would also benefit a certain sector of society so let us just wait and see what happens.
• Philippines
5 Nov 12
Hello louievill, wow so you have good thing going for you there exporting something out of the country. looks like i am beginning to understand why we do not progress in the first place. there should be more investments in the country. In fact, i want our agriculture and fisheries to have more investments in creating buildings that handles farms and fishery growths.
• Philippines
5 Nov 12
Hello louievill, wow so you have good thing going for you there exporting something out of the country. looks like i am beginning to understand why we do not progress in the first place. there should be more investments in the country. In fact, i want our agriculture and fisheries to have more investments in creating buildings that handles farms and fishery growths.
@louievill (18675)
• Philippines
7 Nov 12
hi friend, not really, I own a small trading company so if you are buying a simple thing like PET or plastic soft drink bottle that gets exported to a country like China then you are already export oriented and be affected by the exchange rate. Progress of a country for me does not depend on investment from other countries but rather what it can produce on her own that other countries do not have as in the case of Finland a few years back with their Nokia, the catch is you have to stay competitive
@rsa101 (13336)
• Philippines
5 Nov 12
Yeah I guess with the peso getting stronger against the dollar I think this will be disadvantageous for those working and remitting their dollars from abroad as this means that they will have lower peso value for the money they earned. this also applies for those working online as well. I think from the point of view of the government having a strong peso can be advantageous for them since they would have to repay back our external debt as cheaper as it is today. Both have advantages and disadvantages. It all depends on the dollar reserves we have right now. It is said that BSP has had enough reserves already that is why the peso is very much stronger than the dollar right now.
• Philippines
5 Nov 12
Hello Rsa101, I don't know how the trade is going in general but i believed people won't understand this because of high unemployement rate and more people that are out there. no wonder, i think the dollar reserves hasn't been used yet? i thought it should have been loaned to the other countries that needs it.well, there should an easy explanation to ordinary people.
1 person likes this
@rsa101 (13336)
• Philippines
6 Nov 12
I understand since I too have difficulty on really feeling it at the current situation we have right now. It is hard to believe that our country has saved this much dollars that makes our country stronger vs. the dollar. Because for all the time I have lived here I have experience that our country was always having difficulty in saving dollars. The reason why our government encourage our countrymen to risk their lives to work abroad to give us the needed dollars at the time. Maybe these are the effects that is why we are having this abundance in dollar reserves. Well of course we have loaned a few of the reserves but I guess we are not allowed to have all the reserves be loaned because we also need it for our peso to be guarded always to maintain this good standing. The international community is recognizing this as well since they are considering to place us as an investment country meaning bankers from around the world may soon start promoting our country as a good investment country. If that goes to reality then we can even grow richer if other foreign country starts putting in their money here in our country. Hard to believe but I think that is what the international community is looking forward if our current government would continue to perform well in maintaining this good economic standing.
@meumeu25 (917)
• United Arab Emirates
5 Nov 12
Hi, It's indeed alarming for OFWs. If this will truly happen, it will be a very big disappointment for OFWs, aside from we don't really feel the improvements of the economy in the Philippines, it will only cause more struggle for us to earn more. It would be better if the prices of products within the country will also go low and our salaries abroad will go higher. A tiny difference in the currency is a big impact for us, how much more if it goes that low, if that happens I'm afraid OFWs will be forced to keep their remittances lesser than the usual. Which I guess, will then affect the country's economy and bring the currency back down. And I have to agree with you about the safe living, crimes against business men/women or people who are doing well doesn't only happen in the capital or big cities, it also happen in small towns like ours, just last year there was a consecutive robbery happening in 4 months. A woman was robbed and killed inside her own store. That's how awful insane people can be, in order to survive.
• Philippines
5 Nov 12
Hello Meumeu, Can you imagine how hard it is for the most of them to work on paying and training themselves in four different agencies just to go abroad and then wok. now! their going to find a lessen the peso exchange? lack of cops is why crimes are so damn high we should be more careful. better keep the money in the banks
• Philippines
5 Nov 12
Yeah, and not only the OFW remittances are affected by such, also the whole exports industry here in our country suffers. Good thing that the BSP is doing quite a hell of job trying to maintain the peso-dollar rate. With the inflow of investments and foreign hot money, it seems that our economy is growing. However, the crisis in the US and in the other parts of the world is really something making their currency weak against our emerging economy. Yeah, I am now wondering how much will be left of my accumulated money in Paypal if I withdraw it in the near future.
• Philippines
5 Nov 12
Hello AgentGulaman, I don't know about how the peso is rising while most people are still unemployed. there's gotta be something wrong there to begin with.the paypal exchange rate is as small as it is. how much more if it reaches all time LOW? it's not good for me i think there should be some more investment in the country
• Philippines
5 Nov 12
As an OFW I agree we are ones who will be greatly affected with the stronger peso.Even a little difference in exchange rates will have a big impact in OFW remittances.As what they predicted it could be as low as 30Php=1$ next year.I just hope that foreign employers will increase the salries of OFWs working abroad to compensate for our lost.The better option is for the government to create jobs for Filipinos and provide better salaries so Filipinos don't have to work overseas anymore.
• Philippines
5 Nov 12
Hello Kareemadivina, I am sorry you have to go through this, it's not that i am supposed to be happy but our earnings online is also coming from out of the country. the best way i think is to have businesses in different district so that more filipinos will have more options.
@mrsuniega (789)
• Philippines
5 Nov 12
If this will happen the next year a lot of Pinoy dollar earners will surely unhappy. It is true that our economy become strong but still market price is certainly high. I hope if ever this will happen product value should go down also.
• Philippines
5 Nov 12
Hello Mrsuniega, I don't feel it's going strong, because it will be a trap for our future investors and businessmen because of huge criminal rates in the big cities. remember we still have more or less than 200,000 police officers. unfortunately, we should have had more than one million police officers in the country.the criminality should be lessened.
@Raine38 (9117)
• United States
5 Nov 12
I'm with you there, everyone's saying the economy's improving but it's all numbers in their spreadsheets. I'm sure that me and my family and friends can't feel it. My husband and brother are getting paid in USD since they're based abroad and this news, if it should happen, will be a big blow to us. It's like, they have to render an extra hour or two to be able to earn what they earned last year given all the expenditures here back home that isn't going down. I don't think that our OFWs will come home even if the forex comes to that because it takes more than our currency's strength to actually sustain the kind of living that hardworking OFWs are striving for for their families. I was a former OFW and let's say I'm just one of those fortunate few who made something good that I don't have to return to being one after I have saved "enough". But most of my friends, despite their age and preferences and even health have no recourse but to work once more abroad because nothing happened with their investments here. They opened up some small businesses but they are forced to shut it down because, in their own words, "it's hard to do business here, everybody wants their own share."
• Philippines
5 Nov 12
Hello Raine38, I am only showing a bit of concern here because the rise of the economy isn't really reflecting at the eyes of the people and the Overseas Filipino Workers. It's hard to believe that they have to work harder than before just to earn less again. it's not really hard to start a business, you need to study the market first before going into launch one. most people fail to do that, they end up closing down after a couple of months.
@jaiho2009 (39019)
• Philippines
5 Nov 12
Oh uh, I need to withdraw my money before it decreases I am happy to know that our peso rate slowly establish a good standing in the market- but I am also sad that our earnings will be affected- so badly
• Philippines
5 Nov 12
Hello Jaihosis, You know what I want is to see more businesses going to this country and more jobs instead of just showing a economic growth through the peso dollar exchange. I really find irrelevant now, how can we have a good economy if we are not safe. With recent news about business man getting killed? that's really sad for me. I need to feel that we are growing because i feel most of our people have become ignorant and deteriorate.
@asliah (11149)
• Philippines
1 Dec 12
hi, i have watched television news that peso increase the value versus dollar,and this will a good news to us but not all to the businesses here and even the OFW remittance,peso hike usually have disadvantage and advantages,like in our business,when the peso value increase the price of the item we buy is also have good price in the market.
@joliefille (3696)
• Philippines
15 Nov 12
I strongly agree with you on that last sentence - that our economy would prosper more if OFWS come home and set up more businesses here. I was an OFW for 2 years back in Malaysia and luckily my boss there extended my contract but on a work from home basis. My contract got extended for 2 more years and I did my work in the Philippines. I just resigned this month because I wanted to get into doing my own small business.
6 Nov 12
http://www.hhygj.com/index.htm
@Jenniffe (37)
6 Nov 12
The remittance rate of CNY and USD is changing everyday. The rate is so low that many times we dot dare to do business with foreigners for that there is so less interests. All people say that the economic in china growing faster,indeed, it grows fast. but with the CNY worth more than befour, the price is becoming more and more high.