What would happen if you woke-up oneday to find the rate exchange for 1 dollar is 25 Pesos?

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Anniejo

When that happens, i will start thinking of when it will go down to P20, or lower.

The effect overall is positive, and the OFW sector will by then have adjusted. Because when I wake up that day, chances are the exchange rate before then would have been around 30, at worst. It is impossible for the exchange rate to improve from 45 to 25 overnight.

Joe

For one thing, my mother in law would become hungry. I support her now with dollars. I cannot and will not double her allowance just because the rich filipinos want to have "more" and manipulate the rates.

tom1941

I would return to the States as there would be no need to suffer the sacrifices an expatriate does to live in the Philippines. Simply loving the Philippines would not justify my staying if I could live as cheap or cheaper in the U.S.A.

Unemployment in the Philippines would be off the charts. If you think unemployment is bad now wait until then. Who would be interested in buying your products if they could be bought as cheaply in the States, Europe and Australia and avoid shipping cost.

The Philippine people would see the price of goods within their on country rise and they would not be able to afford anymore goods and services than they do at the moment.

Sounds good, but I think you would find the poor getting poorer and the rich getting richer just as it is now.

Wack0

It will be disaster for the Philippines. Prices of everything will rises. OFW will return and there will be a mad rushes for job.
ONE THING FOR SURE...... i will stop going to the phil

zeto

yeah.. i woke up one day and that was the exchange rate.. unfortunately, that was 20 years ago. in those days, you can ride a jeepney for 1 peso or less!

Jumpin' in the Dark

aaarghhhh! the dollar has gone down some P10 and until now we ordinary mortals cannot appreciate it - no price decrease, no benefits, nada. Meantime the allowance from abroad has dropped from more than 5000 a hundred bucks to 4,500. <sob>

moose20070028

heck, it would be awesome!! time to buy more military machines, ships, planes, and missiles for defense. time to stock our schools with supplies like, board, buses, chairs, and aircons. times to advance our medical- nursing practice, affordable medicines, ambulances, surgical robots. time to boost up our infrastractures, build railroads for train accross the coutnry, heavy duty airports, pahse-out the jeepnies, and more. there are alot of projects we can do with that kind of exchange rate. means our country is starting to be rich.

angelfyr

First of all, things don't happen overnight. Second, the effect wouldn't be that great because of the debts and interests incurred by our government will be tripled or times nth by that time, meaning we would need to pay a lot still. Third, dollar activities affect countries world-wide, if our peso will go stronger so do other asian countries' currencies.

As for the OFWs, they will be, of course, sending a lesser-value dollar, which means, they would need to send more to compensate what their receipient used to getting.

cccc

a low dollar exchange rate DOES NOT mean that the economy is stable or in satisfactory condition.

low dollar exchange rate would be beneficial to the well-off who travel a lot, and to the importers of foreign products. for example a $50 shirt will be cheaper once converted to peso.

on the other hand, it will not be of any help to the exporters and to the ofw's. because they convert less dollars into pesos bring in less philippine money into the country.

a "real" good economy means that the:
- income generated by the businesses is more than its expenses.
- salaries of employees are "leveling" with their daily expenses--- even if the price of gasoline in the Philippines is relatively cheap, a lot of people still have a hard time paying car gas.
- stuff need not be "cheap", they have to compromise with the personal salary of the individual---for example in japan, commodities are 2x to 3x as much, but the personal money of its citizens is large enough to accomodate all these expenditures.
- even if the dollar to peso is 1-1000, rmiddle class citizens can still afford to travel abroad or spend "foreign stuff" because they have plenty of those "1000"'s.
- the bulk of the middle class is also able to enjoy simple luxuries "currently" reserved only for the rich.-- like arts & culture (theatre plays, etc.), fine dining (even not always), personal cars (doesnt have to be a luxury car), branded clothing and items (once in a while), good education, and a nice house to live in.-- in HongKong and most parts of Europe, commoners are able to buy branded items like LV, etc.
- less % of population below poverty level, and less informal settlers (squatters)
- more job employment opportunities.
- less % of pop. from the province that transfer to the cities, increasing congestion.
- AND LAST BUT NOT THE LEAST, IF THE ECONOMY IS SATISFACTORY, THERE WILL BE FEWER OFWS... in fact I dont think that these people would want to be OFWs forever.

battgirl

sigh, I am still dreaming for the 1 USD = 1 PHP rate.

if my not - possible - in - the - near - future dream will come true, it will definitely be good for our economy though this is not exactly a good thing for OFWs. Nevertheless, I am sure the number of Filipinos wanting to look for greener pastures abroad in exchange for life far from their loved-ones would be greatly reduced. After all, no matter how we will change our lifestyle, looks, or citizenship, we will always be Filipinos by heart =)

sandra y

I would love to see this but it is not possible now. Imagine all imported goods will be quite cheap and so no need to travel far to buy them. At 25 as the exchange rate, the converted will be too small for the OFW and the exporters. It is bad for them. For the Phil economy, our dollar loans less peso to service. it should be a balanced rate for both the exporters, OFWs and general public.

Aref H4

I'll knock myself out, sleep some more, and wake up when the rate is one peso equals One Euro!!

That means our economy is really standing in firm ground. I can go home. Knock on the doors of the Oppus Dei, and congratulate them for a job well done.

annabelle p

There will always be 2 sides of a coin. But the happy thing with what you said is that the Philippine economy will be real stable. Prices of imported commodities will decrease including machineries and other spare parts needed in our industry or manufacturing businesses. It is like a chain reaction that is beneficial to us Filipinos. And with the economic growth, will come more businesses and more jobs. Then, there will be less reason for our people to go abroad for jobs when they can have one in their own backyard.

diana

this is a good thing for our economy but a bad and sad thing for OFWs and their families

jongbong

zzz... they said it is a good thing. but why was the price of oil didn't decrease when the value of pesos is getting stronger? hmmm... beer... zzz...

nicole

It's a bad thing because, when Gloria Macapagal Arroyo, our rate of 1 dollar is 52 pesos, now it's 47 pesos for 1 dlollar. Many people in the philippines, wants to kick gloria out because they think she can't run the philippines.

Well

Well, the first thing that would have to happen is that Scotland Yard, the FBI/CIA and investigators from all the major banking institutions globally would immediately launch investigations to determine how in the world did a currency (with the same probability of short-mid term success as pigs flying) end up appreciating that fast with absolutely no tangible economic factors to support it. It's like magic!

Seriously, a purely hypothetical positive valuation of the peso presumably against the US dollar or Euro would actually result in diminished purchasing power for the OFW families at home. For example, an OFW sending home $1000 a month that would be converted to P45000 today would see a near 50% cut in the purchasing power of his money to his family back home. They will only be able to buy half the stuff they used to.

A worse consequence of a rapid valuation macroeconomically would trigger an instant drop in the volume of Phil. exports to the US and other 1st world countries, as those countries would immediately shift their orders for goods to competing exporters such as China, Malaysia, Vietnam, etc.

However, don't panic, that valuation scenario isn't happening. Sigh.

hseniel

My target savings would be much harder to attain.

? viena ?

good for the country bad for my family!

mae

awwww.. this wud upset and drive me crazy. As before it was 50 pesos and now 46... for some reason i feel poorer when i convert the money.

One day i think it will drop as low as 25!!!

nocturnal

first, i'd be overwhelmed with joy. wow, philippines is rising up again. at last! but then i'll realize that, what the heck, we're swimming in debts again just like during marcos' time. we were so close with the american dollar. but then look at the philippines now. we were able to do it because we borrowed lots of money from the world bank. and now, we can't even pay the interest.!

john

that would be a great news for us ofw... meaning no need to go abroad just to earn bigger money. just hoping that commodity prize in the phils will also go down///

dave i am

<looks at the calendar> whooa cool 1998! finaly an answered prayer!

ryke

that would mean NO MORE FOREIGNERS... because their hard earned DOLLARS has no more purchasing power.. and we Filipinos will become tourists in other countries because our PESO can buy more... PESO POWER

myfrenzcallmeheath FM

i woldnt worry with things like that... believe me, pretty soon, none of our money will be worth squat!! read the BIBLE.... we are fulfilling prophecy right now......i bet in the next 10 years, if not sooner, we will be in serious financial ruin because as it is, american money isnt worth anything! invest in stuff that is valuable like gold and diamonds... seriously... its a good idea!

nome

this is the rate in the early 90's. and i tell you it didnt made a great impact at all economically speaking. and as for our ofw's it didnt have any either.

gangsteris4u

Wow nice HEHEHEHEHEH

Gypsy Gal

It is coming

Ja9

it doesnt matter, everything is will still be the same. example, if something costed 20 doller, it would cost 1000 pesos.

its good for american economy because it means 1 of our dollars is 25 of theirs

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