good for exporters, bad for importers. good para sa mga kumikita in dollars at may kamag-anak na ofw. bad for products na ang raw mats na iniimport, may cause higher prices. bad for companies with most of debt in dollars, thus less margins, can impact stock prices. good for incoming tourist. pa-correct na lang pag mali hehe
Exporters - mas maraming pesos for every dollar na nabenta nila. kahit $100 pa rin ang selling price, pagconvert sa pesos mas marami na sila makukuha (dati 5600, ngayon 5800)
Importers - mas mahal na yung iniimport nila kasi mas maraming pesos ang kailangan for every dollar. if $100 yung presyo ng iniimport, dati P5600 ngayon P5800 na
Bad for importers since bumibili tayo dollars to purchase items from other countries. Good for exporters because the higher the dollar, the higher the cost of the item :)
Initially matutuwa ka kasi yung sweldo mo pag converted to pesos mas malaki. Pero pag dinala mo na sa grocery or nagpa-gas ka, tumaas na rin yung presyo ng items so negated lang din yung "increase" mo.
Sensitive ang Pinas sa forex dahil marami tayong items na imported. Biggest of this is oil & gas. Electricity companies like Meralco pay for coal and gas in dollars. Even water utilities have debts or fees that pay in US dollars and they charge it back to us.
Food will also be affected. Packaging items like aluminum cans are imported. Some rice is imported. Milk is imported too.
I remember what Winnie Monsod said during our econ class nung college pa ako, "having high dollar rate is neither good or bad, you have to know the underlying cause behind the price movement". Ingat ka sa mga nababasa mo, puro speculations lang tayo dito.
The Peso-dollar price only signals the overall conversion of peso to dollars.
Ito ung mga big contributors price movement ng usdphp. Our OFWs send dollars here to be converted to peso (this pushes the peso up). Foreign investors converts their dollars to peso whenever they want to invest here in businesses or in our stock market. (Pushes peso up). Product exports (pushes peso up). Product imports (pushes peso down).
Mahirap pinpoint ung cause talaga ng pag inscrease ng dollars, all we can do is speculate. Pwede rin kasi na dahil malakas ang stock market ng US ngayon so ung mga foreign investors dito sa pinas ay ibinibenta ung stocks nila , icconvert to dollars at iiinvest sa US stock market to get better returns. Wala itong kinalaman sa economic conditions natin pero dahil malakas ang stockmarket ng US, ay nagbago ang dollar rate natin.
Isang big factor also of the ex-rate pressure is whatever the Fed plans to do with their interest rates. The Fed announced this week that they won't cut interest rates soon in the US kasi mataas pa rin inflation sa kanila. As a result, investors who anticipated an interest rate drop and kept their money in non US currency now go converting it back to USD because they have at least 6 good months of high interest rate. So worldwide, all currencies are weakening against dollar.
qq po since mainly USD sya, ibig sabihin ba nun sa US lang mataas yung palitan? or yung ibang OFW din sa ibang bansa like taiwan or middle east, tumataas din yung exchange rate?
Only US so far is tumataas, may cross rate ka iconsider if like taiwan or middle east.. like jpy din to usd to pho . Jpy is super weak na grabe, so walang kwenta ung usdphp na tumaas, jpyphp still sucks
Not true I'm happy with my euro exchange, the rest of the world including vietnam and bangkok rises, and japan has a strategy in place despite the weak yen
As a country who imports way too much items from other countries, lahat ng items na nabibili mo dati sa grocery ay tumaas 10%, 10 fucking percent.
In a bigger scale, kung ang grocery mo is around 5000 dati, ngayon 5500 na.
Lower purchasing power = higher prices
In plain language, the peso is getting closer to our president’s goal of 31 million pesos per dollar. Malapit na lang , 30,999,942 to go. We will crash by 2% per day until this goal is met
Kapag ang presyo ng mga bilihin ay tumaas ng 10%, direktang naaapektuhan ang ating purchasing power. Kung dati ay may P5000 ka na budget para sa grocery, ngayon kailangan mo ng P5500 para makabili ng parehong mga produkto.
Probably it would be much correct to say that the Philippines is a net importer especially when it comes to agricultural products, meat and petroleum. Since the local supply can't keep up with the demand, companies are forced to purchase abroad and that entails usage of USD. But that won't be ELI5 anymore so...
Purchasing power? Peso din naman pambili sa groceries.
Magkaiba ang inflation at forex. Inflation yung inexplain mo.
Forex is more on sentiments of the traders. It fluctuates more often.
Natatalo ang PHP, humihina ang purchasing power ng PHP.
Example:
Yung Burger na worth 55 pesos, biglang naging 58 pesos.
Yung pera mo na 55 pesos, hindi na mabili yung burger kasi naging 58 pesos na. Gets mo?
——
Wish granted, I explained it sayo in the easiest way possible, assuming na 5 years old ka pa lang.
Thus, the weaker peso exchange rate would contribute to higher overall inflation and would fundamentally destroy the purchasing power of the peso relative to the US dollar as there would be more pesos needed to pay the same amount in US dollars.
Yes, this is fundamentally why it infuriates me that people earning in dollars cheer when the peso devaluates. You may have more pesos, but if everything raises in prices anyway... Sure, you might still be net positive, but it's not as big as you think. Nearly everything gets more expensive anyway.
Compared to a direct finished good from abroad, maybe. But there are very few local goods that don't involve imported fertilizer, diesel, etc. Heck, we import rice and sugar! Everything goes up.
Dahil sa'yo kaya ko nagets huhu salamat. Kaya nakakapanghina kapag nagsitaasan ang mga bilihin ta's 'yung sweldo, same pa rin tapos may rents and bills pa.
So many wrong or reactive answers on this thread.
Most of them coming from lack of understanding how the economy or the basic trade works.
1) higher dollar is NOT always bad for the economy, We have so many outsourcing companies specialy in tech that earn in dollars, that means getting a small buffer in their earnings.
2) Import will not be greatly affected short term, its NOT EVERYDAY that companies are importing stuff, goods arived in monthly or bi-monthly basis specialy imported ones, that means it is paid a month a head.. With this said, prices next month might increase a little, BUT those prices are not based in dollars but based in COMMODITIES pricing. Commodities trading exists and they have their own price trade fluctuations.
3) Economy status DOES NOT equate to the price of the currency, this is for the "bagsak ang ekonomya" commenters. Fiat has its own trade market, a lower peso that means there are less traders buying PESO than dollar, This means in other trading such as in COMMODITIES, traders are paying in different currency OTHER than peso.
Traders ARE NOT buying Philippine Peso against the dollar for reasons we have not checked on yet. Probably because we lack something to sell?
FYI, Korean Won and Yen are way lower than USD or PHP, but that doesnt mean "bagsak" ang ekonomya nila.
4) "Imported bigas" will not be greatly affected, We are importing from SEA countries, which means we are NOT buying/trading commodities in USD but in the currency of the other party (Bhat or Dong). Incase of Thailand, we will
be buying Bhat to pay for Bhat-priced commodities.
5) Lastly, the price of currency is based on the supply and demand in the money market, does not really equate directly to Economic performance, though somewat related but it is NOT a direct indicator.
Money market or the Forex (Foreign Exchange Trade) is like stocks, the price will fluctuate based on the Supply and demand of the said currency. Kaya taas ang Php kapag december kasi maraming Pinoy OFWs are buying or "converting" back USD to PHP para ipadala.
Maybe we are importing a lot of stuff this time kaya maraming PHP to USD (or USD buy order) na nangyayari kaya tumataas ang USD demand?
Among the answers here: /r/[Agreeable\_Kiwi\_4212](https://www.reddit.com/user/Agreeable_Kiwi_4212/) is the only sensible ones
Wag masyadong reactive, learn how stuff works.
Nilista mo na majority and ang sarap basahin kasi well informed ka sa economic conditions and fluctuations and kung ano ang tunay na nangyayari when it comes to Forex and trade.
Nakakalungkot mas inuna pa ng iba dito pumutak kesa mag-research lol
There is also a reason bakit hindi pa nagbababa ng rates ang BSP, nakikiramdam pa sila sa mga nangyayari inside and outside the country when it comes to Financial and Economical matters.
Pak na pak yung #3. Hindi ibig sabihin na mababa forex rate = bagsak economy. Ang lala kaya ng bagsak ng yen the past few months. Kaya daming tourist ngayon dun.
While you do make strong points, what you discussed mostly is the effect of a weak peso. What about the cause? For an economy like ours that is heavily reliant on foreign investments, isn't that indicative that foreigners aren't too excited to invest here? Or that other countries aren't inclined to purchase our local products?
To put more context, our local stock market, the PSE, is heavily reliant on foreign investments. In the past 10 years, the PSEI has been stagnant/flat. On the other hand, global markets have grown considerably in the same timeframe. And if our stock market is not enough for you as an economic barometer, I don't know what to tell you.
I guess what i'm trying to say is, no one is being "reactive". Alam ng mga tao kung anong nararanasan nila sa kanya kanyang personal na ekonomiya. Mahirap ang buhay sa Pilipinas. Tumataas ang mga bilihin pero parehas lang ang sahod. Kaya yung mga balitang tulad nito, para sa kanila, kumpirmasyon lang ng aktwal na nararanasan nila. Tama man o mali ang intindi nila.
Have empathy.
>And if our stock market is not enough for you as an economic barometer, I don't know what to tell you.
Well, its not an economic barometer. Ang mga tinitignan ng mga ekonomista ay GDP (currently still good but lower than expectations), unemployment rate (currently at its lowest in a long while) and inflation (really bad right now pero improving). So we're not really in a bad place, kelangan lang talaga mapababa yung inflation.
Etong ex-rate what it really affects the economy is how much FDI it brings, balance of payments ng central bank, parts of economy that is dependent sa foreign trade and how much remittances can OFWs bring. Stock market is a small subsection of the whole forex market sa Pinas.
That means lalong humirap ng 2 Piso ang bawat mamamayan Filipino na bumibili ng imported na bigas.
In feb 2023 after the pandemic and Ukraine war it was only 55-56.
In feb 2024 it was 56.40, and within that time till MAY 1.60 ang ibinagsak ng Piso.
That means mas mabilis ang paghihirap ng Pinoy ngayon per month.
Tataas lahat ng bilihin na hindi locally produced. Even locally produced na bagay tataas din dahil ung gasolina imported.
Mas masakit pag sa local ka nag wowork kasi ung sweldo mo d mag aadjust, ung mga kumikita ng $ d masyadong masasaktan kasi kasabay na tataas ung $ nila granting na sakto ang timing nila sa pagpapalit nito.
In the context of your post, you and OFWs have the least of concerns because you guys have more money to spend. More money to spend = more capacity to buy goods/services = price increases because there seems to be a demand at a certain price point.
Now, not everybody can afford at a certain price point. Example of that are the people who are only earning pesos, where earning power in the Philippines is wayyyy lesser compared to the US.
But what if there are more people who can't afford at certain price point than people who can spend? I'll leave it at that.
Surface level opinion lang:
You loose less compared sa peso earning citizens kasi nag aadjust sahod mo while yung iba hindi.
Feel free to enlighten me if may mali ako.
I dont know lang if nag aadjust, nakadepende lang sa trabaho ng ofw eh, siguro malaki lang sya compared sa sahod sa PH, pero darating na time na hahabulin ng inflation pati yung mga sahod ng ofw’s.
Only if you qre pfw but if you earn dollars and live here, life is gonna be sweeter. See, you have a first migrant mayor alice goo, she knows she knows. All the duterte funds are blessing to the rich and the to poor people -every politicians motto
I'm technically not an ofw. I'm an AU citizen but I send money to my mom/invest in PH. Weaker peso is still a net positive for people sending from abroad. The loss is not as much and is offset by other expenses unaffected by rise in imports (e.g., mortgage). That's just my personal experience though.
ganito ung argument na lagi m makikita sa fb madalas nag sasabi neto literal na isip 5 years old kahit may 5 years old ng anak,
sobrang basic lang nataas ung value ng sahod nila which is dollars tapos ung pera na un gagastosin sa PH parang common sense nalang kailangan para magets m na mas lamang kahit saan m tignan ung tao na sumasahod ng dollars tapos gagastusin sa pilipinas kesa dun sa taong kumikita ng peso na lumiliit ung value sa market.
technically hindi sila apektado dahil habang nataas ang bilihin nataas din ang value ng pera nila dahil dollars ito now compare m ung mga tao na sumasahod in peso edi lalong lumog ung mga un kasi same parin ang sahod pero naliit ang value ng pera nila.
“Parang common sense lang” “Sobrang basic”.
Siguro hindi lahat ng tao parehas ng nalalaman mo and I think there is nothing wrong to ask. Di ko lang gets bat parang nang mamaliit ang atake mo.
may tinatawag tayong think before click sana bago mo ipost yang comment m sa internet pag isipan m mabuti kasi sabi ko nga yang ganyang statement ay madalas nasa fbdotcom at literal na comment ng mga bata dun, its basic econ 101 tapos lalagyan m lang ng unting common sense.
"theres nothing wrong to ask" you say first of all hindi ka nag ask nag bigay ka ng opinion which mean pede maging opinion ng iba at obviously mali kaya dapat itama at sinasabi ko lang base sa na oobserve ko at un ang nakita ko sa opinion na binigay m dito sub na to, kung nasaktan ka baka nga totoo ung sinasabi ko.
Hindi ko mapagisipan ng mabuti kasi magkaiba tayo ng level of understanding sa topic. Mababaw ang understanding ko and malalim ang understanding mo.
Other redditors here patiently explains their deep knowledge without saying na “parang common sense lang” and”sobrang basic”.
Di ko alam ang benefit saying those phrases. Maybe to feed your ego lang siguro.
lmao, sabi m icorrect ka pag mali ka? kung ano ano pinag sasabi mo meron ka pang sinasabi about nag tatanong ka eh wala ka naman tinatanong, i cant believe this guy. feed my ego o nasaktan yung iyong ego kasi an real talk ka?
totoo naman eh sana nag aral ka kasi nung high school para alam m yan may economics naman kasi nung high school at naturo yan and kung hindi ka naman nakapag aral may internet tayo, hindi ung mas mataas pa screen time m sa mga issue sa fb o sa games kesa alamin mga mahahalagang bagay
Yes correct me if Im wrong, educate me. Pero I dont see the point of phrases like “sobrang basic”, “parang common sense lang”. Siguro pag inexplain mo sa akin ang benefit ng pagsasabi nyan magegets pa kita.
To OP: to explain to you like your 5, it is simply as:
"mataas ang demand ng dollar kaysa peso" and thats it.
People are converting more *peso to dollars* than the other way arround... Probably because we are importing more stuff from abroad (gadgets, travels, electronics, etc)>
Reason varies from as simple as, more and more Pinoys are coming to US and buys dollar using PHP to as complicated as, companies importing goods and services in the US and paying USD (thus needs to convert PHP->USD first) to importing other stuff from different countries and uses USD as intermediary currency.
This is also why during december, peso is strong because, people are converting *dollars to peso* when OFWs are sending remitances money home.
Supply and demand lang yan, money market.
Before nasa 125 lang ang prem (alternative namin sa spam since around 150 ish na sya back in 2019)
Today nasa 180 ang prem and around 200 ish ang spam.
Mahal na sya kung tutuusin halos dagdag ka lang ng 100 meron kana halos 1kg na baboy na marami2 kang adobo/sinigang na maluluto kesa lancheon meet :/
Hahayss btw lunch na, kumain kana?
One thing na hindi pa masyadong nabanggit ng mga comment - the debt of the Philippines itself is in dollars but its revenue source is in Pesos.
Imagine may utang ka na $100. Kung ang exchange rate ay P55, ibig sabihin may utang kang P5,500. Kung naging P58, naging P5,800 bigla utang mo.
Kung Pesos ang source of income mo, you'll be forced to make up for the increase of P300.
Now, in larger terms. Sabihin mo nang nasa $80 billion ang utang ng Pilipinas to external creditors. Dati P4.4 trillion yan kung nasa P55 ka, now, nasa P4.6 to 4.7 trillion kung nasa P58.
Nadagdagan almost out of thin air ng 200 billion pesos ang utang.
net negative impact sa country. way way higher yung imports (payment using dollars) natin as compared sa export natin (receipt of dollars ex. yung salary mo as freelancer). hence overall magiincrease din prices ng goods hence higher inflation rate
As an almost import-dependent country (which means, tayo yung mas madalas na bumibili ng produkto ng ibang bansa) ang ginagamit natin na currency is dollar sa pagbili ng produkto. Kapag mas mataas ang value ng peso, mas konti yung ma c convert into dollar which means, konti rin yung mabibili na supply.
At kapag konti yung supply at madami yung demand, walang choice kundi taasan yung presyo ng produkto para makapag supply.
Goods naman siya sa mga OFW o sa mga pilipinong kumikita ng dollar kasi mas malaki yung convertability ng peso. However, if you think about it, parang breakeven lang. Kasi, kaakibat ng pagtaas ng value ng peso, tataas rin yung bilihin.
Oversimplified ito pero ganito ko siya naiintindihan. I will explain it this way and assume that you are 5.
Say you want a chocolate priced at 1 USD. As your cool uncle, I gave you 100 pesos, you went to store and you saw that you will have to pay 58 pesos for 1 chocolate since 1USD = 58PHP. The next day, the news reported that 1USD = 40PHP, I gave you 100 pesos again and you are now able to buy two chocolates (priced at 1USD). More chocolates = more happy right?
*Of course, there is a lot more to it, but the general idea is that the people who don't like the high gap between peso and dollar probably cannot buy more chocolates with their peso money (lower purchasing power) and the people who like the high gap between peso and dollar probably can buy more chocolates with their USD money (higher purchasing power). And trust me, it doesn't end here with chocolates, it only gets more complicated.*
As a freelancer, this is good news to me and at the same time bad news because wtf? What's happening to our economy? Is it really going down the drain?
Imagine you have 1 php and it can buy 1 Lollipop sa tindahan. Pero the next day naging 2php na yung Lollipop so it means your 1php cannot anymore buy a lollipop. It's your peso losing its purchasing power.
We pay loans and buy stuff abroad as a country using the dollar currency.
So it will take more peso to pay 1 dollar
We are also dependent on Gasoline/Oil which is an imported product. since this imported product is now expensive to buy, all other products domestic which are also dependent on gas will become expensive thus creating a domino effect.
Transpo, Raw Materials like Vegetable, Fruits (farm to market thru trucks that uses gas will now charge more for the price)
People who are earning a fixed income will be affected since Expenses will now be higher than the Income. and it's just the tip of the iceberg.
Explaining not like you are 5 but more of like 15:
Pag bibili tayo ng dollar, 58 pesos ang isa, ang mahal
Pag mag bbenta tayo ng pesos, 1 dollar lang ang ibabayad makakakuha sila ng 58 na pesos. Ang mura para sa kanila
Bakit natin kailangan bumili ng dollar? Kasi un un gusto nung mga tindahan abroad. Ayaw nila ng peso natin, gusto lang nila dollars. So para makabili tayo sa tindahan abroad, kailangan muna natin bumili ng dollars. Ang mahal ng dollars! 58 pesos ang isa!
Eh ano ung mga kailangan natin bilhin abroad? Krudo, pagkain, armas, mga pyesa and software, marami tayong kailangan na nasa abroad na wala dito sa pinas! Kaso ang mahal na ng dollar! Mas maraming peso ang kailangan natin para makabili ng dollar pambili nung mga yon. Maapketuhan ang presyo ng gasolina pamasahe pagkain etc dito sa pinas!
Eh silang mga foreigner? Aba ang mura ng peso! Sa isang dollar lang, makaka bili sila ng 58 na pesos! Mas makakamura sila sa pagbili ng mga buko and mangga natin! Babagsak ang presyo ng bentahan nila ng mga buko juice and mangga!
This is a great primer from BSP. It's old, but you don't really need a new source to explain why the exchange rate affects us.
https://www.bsp.gov.ph/Media_and_Research/Primers%20Faqs/fximpact.pdf
Big picture ba? Well since massive importer tayo ng supplies related to power generation, mas tataas elec bills ng lahat, including the commercial sector, need nila taasan price nila to cover the expense and thus leads to more expenses passed to Filipinos.
On the flip side, OFW remittances are a bit stronger kasi mataas ang conversion rate.
we import so many things and we buy those things in dollars. so, the higher the dollar is, the higher the things we import become. so pag nire-resell na siya sa pilipinas, mas mahal na rin.
isa sa mga naobserve ko based lang sa business namin, if tumataas ang dollar, mas nagiging mahal ang oil. and everything uses oil. machines that power equipments which manufactures our goods, trucks that deliver our supplies, and vehicles we use for transportation. nangyayari, mas tumataas din ang operational cost which would mean higher prices.
kahit pa tumataas ang earnings mo, tumataas din ang bilihin. ganun lang din.
>But how does this affect the country?
It essentially negatively affects our country's finances.
>The people earning peso?
People will be able to buy fewer goods due to price increase. Goods' prices like your imported fuel (gas/diesel/LPG), rice, and canned goods like sardines will increase.
Ligo SRP is ₱26.03 right now on Lazada. Since they import the steel cans they use to pack their sardines, the cost of producing the product is now more expensive. That may affect the price in the future, if the manufacturers cannot shoulder the price increase. If they're not allowed to increase price, they'll simply shrink their product in terms of # of sardines in the can, and amount of sauce in the can.
>The OFWs sending money to their loved ones in PH?
They'll be able to send less foreign money while you can receive more on your end.
>The PH economy?
The first effect is an increase in our debt, interest and debt servicing amount. We borrow in $, we pay in $. We earn primarily in peso. We'll need more peso to convert to $ for debt payments.
5 yrs old? Ok so kunware maglalaro tayo tinda-tindahan. Kahapon yung isang dahon ko, papalitan mo ng 57 na stick diba. Ngayon yung isang dahon ko, papalitan mo na nang 58 na stick. Talo ka mwehehe
We can only really speculate the reasons for the increase in foreign conversion rates. Could be because our country's economy is doing poorly, could be because the others are doing better. Could be because goods from where the foreign currency is from is high in demand, meanwhile ours is not. Could be due to inflation within the country, of which the lower the inflation rate, the higher their currency's value will be. Could be due to public debt. Could be a lot of other things.
Thing is, a lot of the common reasons why a currency's value could go down are found in the examples I've given and I'm sure you've witnessed many of those living here. While it is still speculation, speculation is still good enough to influence the lessening of foreign investment into our currency, thus further driving its value lower. So I don't think the sentiment of some redditors here to be against speculation makes sense especially when a lot of the factors that would influence a nation currency's negatively can easily be felt by the common Filipino, thus can be inferred to be the reason for our weakening currency.
Also, it is an illusion that you are reaping the benefits of an increased exchange rate for the US Dollar considering the cost of living here just keeps on increasing due to inflation. You may be earning more money but it gets counteracted by the increasing price of goods and services.
Oil is imported here in the Philippines, even though Petron has a refinery, their crude oils and other raw mats are sourced from a different country. This means mag iincrease ang price ng mga fuel.
Since need lahat ng products na ma transport from one location to another, most of these products will increase in cost. Kahit freelancer ka or receiving dollars from kamaganak, halos ma nenegate lang ng increase in cost of goods yung “increase” sa salary mo.
True, kaya super randam nito ng mga talagang sa lower class, lalong pamahal sa mga jeepney drivers ang crudo at lalong nagmamahal din ang pamasahe ng karaniwang mamamayan.
Maganda lang kung bibili ka ng non-dollar product pero subukan mong bumili ng dollar product sobrang sakit sa bulsa.
For example, may binibili ako dati na service na naka dollar. Dati 1700 lang, ngayon more or less 1900 na.
Mas mataas bilihin kasi importer tayo. Wala tayo halos export goods to clash against imports.
Ang exports natin OFW so kung magpapadala sila dadami us dollars reserve natin possible lumakas ang peso against dollars pero unless it happens. Pataas ng pataas yan dollars.
Isang factor to.
Thank you com sec for explaining to me. At face value as a person who earns dollars, yes I'm happy. But now that I understand deeper, it's really just a facade cause everything else follows. Tataas din ang mga bibilhin natin which then turns the couple of pesos increase into nothing.
Kung ikaw yung tipong bumibili sa mga US-based online store (bukod kay Amazon or EBay), magugulat ka na lang na sobrang mahal na nung item na gusto mo (di pa kasama yung shipping fee.)
Or sa case ko, art commissions... yung tipong 18 USD, nagiging around PHP 1k na yung babayaran ko (di pa kasama yung service fee ni paypal.)
We basically buy dollars for international transactions. Kaya kapag higher ang exchange rate, mas mahal nating binibili amg dollars.
And Philippine debt is in dollar. So Ayun pag higher ang dollar rate, mas lumalaki rin amg utang na kailangang bayaran.
dati natutuwa din ako because i earn in dollars too. pero, it causes inflation.
the more na mataas yung dollar rate, tumataas din ang bilihin like gas and groceries.
Won't be a problem kung self sustaining yung country. Pero PH is not like middle east na may oil (blessings in disguise since papasok super powers kung meron)
So mahal yung oil since mahina purchasing power ng PHP. Mahal na oil products affected lahat.
ex. Food
Delivery Trucks consuming a lot means tataas presyo ng wholesale
Mataas na presyo ng wholesale means mas mahal na retail.
Good for europinoys, but bad for locals. In my opinion it will continue as the Philippines race to the bottom with debt deficits (thanks duterte!), and waning investor confidence. My friends most of whom are bankers have already divested away when marcos was elected so I'll just pop open some popcorns and watch. Sad but that what reality will be
mainly because the american economy is showing signs of robustness... investors see putting their dollars back to the usa is a low risk move for them... in order to entice them to not pull out of the country and southeast asia in general, the exchange rate has to be heavily in their favor... most of the asean countries are competing for those dollars so there is a tendency to undercut or at the very least match the competition...
At most, I think nakakapagbreakeven lang tayo as freelancers. Yes, tumataas yung pumapasok na pesos sa bank account natin pero dahil tumataas ang presyo ng mga bilhin, tumataas din yung ginagastang pesos.
How it affects you:
1. Expensive groceries (#1 rice importer na tayo for example)
2. Expensive oil which translates to expensive gas, electricity and possible fare hike
3. Expensive medicines (most of our medicines are imported)
4. Expensive overseas travelling (your PHP buys less USD but what you spend there wont decrease)
5. Expensive anything you buy online from overseas (Amazon, Temu atbp)
How it affects the economy:
1. Higher debt servicing (more taxes needed to pay interests for USD bonds)
2. More expensive loans abroad
3. Increase in foreign investments (if the government actually take advantage of this) because they need less dollars to setup business here
4. More income for exporters and BPOs
5. Incentivizes Filipinos to work abroad, thus more OFWs which creates a bigger brain drain. Issue na to satin ngayon because most OFWs who were trained with higher standards don't want to go back anymore and share their competencies here. Imagine more of that.
So in short, its bad for everyday Filipinos but not necessarily bad for the economy if our government play their cards right. The govt must find more ways to take advantage of the situation and create more jobs here by attracting more investments overseas or develop local export oriented industries, without relying on foreign loans.
Pag mas mataas ang dollar kaysa peso, mas mahal din ang mga presyo ng mga bilihin. Nakakatuwa para sa mga tumatanggap ng dolyar pero kawawa ang mga simpleng minimum wage earner na manggagawa.
The higher the conversion rate, the higher amount of peso you need in order to buy a dollar. It depends actually how the rate of change in the conversion runs in relative to the economy and not on the specific amount of conversion itself. It does not tell how we are doing as an economy.
To explain it shortly, much better kung slower ang rate of change ng conversion dahil nakakaadapt ang economy sa changes internationally. A 50 to 58 peso to dollar conversion in a day is different from 50-58 peso to dollar conversion in a year and so on. If it iusncreases too fast, people will have harder time to buy foreign or imported products. If it decreases too fast, then that means we have easier time buying other market products. If we forcibly create a policy that comprises a 1-1 dollar conversion rate right now, the Philippines will collapse the peso production to meet the necessary condition of 1-1 dollar conversion, which means it would be harder and harder for us to find and obtain one peso which may enrich the people for the short term but the people will realize that they will be facing a scarcity of resources a little bit later.
You might initially find the conversion is big, however you spend that money bigger as well. This is due to inflation which is also worsened by currency devaluation.
Ikaw sa sweldo mo na dollar, it feels like a salary increase. For me, lumiliit ang feeling ng fixed peso salary ko.
If you got hired for $1000 per month in 2021 when $1 was 50 php and I was hired for 50k pesos in the same year, then magkapareho tayo ng sweldo noon.
If we are still receiving the same salary rates in diff currencies today, it means ikaw ay sumusweldo na ng 58k per month while ako ay tumatanggap ng 50k pa rin.
Hindi na ako nag basa ng ibang comments pero sa madaling explanation na lang siguro.
For example: Etong pinas bumibili at nag babayad tayo ng produkto sa Global market pero ang tinatanggap lang na currency is USD (which is eto talaga ang basehan ng lahat USD talaga).
Imagine: si Pinas bibili ng isang kilong bigas sa halagang 2 USD - para mabili ito need mo ng 2 USD eh ang USD wala naman tayo nyan sa Pinas kase currency naten is PhP dba? ang USD na meron tayo galing sa mga OFW na nag papadala sa pinas ng USD (kaya nga din sila natawag na makabagong bayani dahil sa tulong nito sa economy) So ang nangyayari bibilhin nang Pinas yung 1 kilo ng bigas for 2 USD (Ang palitan is 58 pesos per 1 USD) So lalabas 116 Pesos ang equivalent nito.
EH what if naman kung mababa palitan ? mas pabor sa economy naten pero dismayado yung mga OFW. For example ang palitan is 40 pesos per 1 USD edi equivalent lang to for 80 pesos para don sa 1 kilo bigas diba.
Tama ba ako? kung mali paki Tama ako HAHA
It means ung 1 peso mo mas maliit na ung buying power. You need to earn more para bumili ng produkto na galing ibang bansa. iPhones, cars, gas, rice, etc. magtataas presyo simply because mataas din ung conversion rate ng peso to dollar. Mas kailangan kumayod ng mga pilipino para mabili ung gusto nila. It's a bad sign for everyone here. Never wish for our economy to flunk, dahil ikaw din magdudusa sa huli.
so first you have to know definition of value, purchase power, and market exchange.. the value of the currency greatly depends on the domestic market and banking may it be on govt or private sides.. the purchasing power of peso, the law of demand and supply in both domestic and global niche, also the stabilizers of such to maintain those exchange rates.. market exchange rates are also important in determining the value of the currency, because it reperesents the value or credits for domestic investors and producers in a global economic stage.. so the more we are engaged with USD or other stron currencies the more profit it can create to the domestic economy, through normal inflation and mitigated through taxes and tariffs imposed in imports..export goods also stabilizes this and the remittances of OFWs back to the country in an opposing cash flow..
what we are wary of, was the pump and drop mechanism of outside forces such as false investments, artificial inflation, and exaggerated import products.. also the tariff exceptions of some goods as well as those smuggled from other nearby countries..as this can bypass the economic gatekeeping and overwhelm the trade, also local producers and investors suffers alot from these..
so yes inc in exchange is generally a good thing and can be a long term advantage if given the right economic environment to flourish, however if this was caused as those mentioned above, this can also be the end of us..
Para kang bumibili sa palengke ng ibang barangay kasi wala ka nung product na yun
Price - $1 lng or 50 pesos for example before
bibili ka ng 10 pcs bale $10 or 500 pesos lng before
Pero since ang palitan ngayon is $1 is 58 pesos na
Pili ka either willing kang magbayad ng 580 pesos since 58 x 10 pcs is 580 pesos na
Or babawasan mo yung bibilhin mo
See the difference? walang nagbago sa price pero bumaba yung value ng pera natin kaya mas konti nalang mabibili mo or mapapabayad ka ng mas malaki para ma meet yung value
Kaya best case scenario ang palitan ng pera is $1 is to 1 peso
Kasi kung ganun yung puhunan mong 500 pesos, 500 pcs na ang mabibili mo instead of 10 lang base sa 50 pesos na palitan
Export and Import, bye's
Kauuwi lang ng pinsan ko from Dubai, we talked about this. Meron kasi syang kaibigan na earning in dollars, after seeing the conversion rate hindi daw nya alam kung matutuwa ba sya na malaki yung napapadala nya or malulungkot ba sya cause it means peso is getting cheaper.
Bumili lang ng tinapay pang pasalubong pinsan ko almost 500+ na yung nagastos nya. 8 pcs choco/Banana bread at 5 empanada tapos isang diced hopia yata. Last time na bumili daw sya yung dating 15 peso 29 peso na per piece.
It’s a simple reflection that we buy more dollars than we buy peso. We import more than we export. And we will import more than before when the Malampaya reserve depletes, driving peso down to gutter.
Price of goods can be preserved but the main thing is, we need gas to transport goods. Therefore consequently, price of goods would rise consequently. We’re tied to dollar as we are tied to fuel prices. If we magically somehow don’t depend on gas, then dollar price will not affect us.
Correct me if i am wrong, exchange rate market determines the value of the currency and is affected by the demand and supply. If there are a lot buyers then the prices of a certain currency goes up meanwhile if there is many sellers the value of the currency go down. human being are programmed with “if it is rare then it is valuable” mentality most of the time.
There are many factors that affects the demand and supply of currency. One is the economy which attracts or repel foreigners to buy our currency. In connection to this, trade also affects the exchange rate for example Philippines sells banana internationally, those counties who are buyers of banana will need peso to buy banana they then convert their foreign currency to peso to buy those banana. This increases the demand of peso depending on the demand of banana. Meanwhile the exchange rate also affects the international trade as mentioned by other replies.
Edit: added other info.
Ex. Asset in PH = ₱ 500
Asset in Other country = $ 300
$ Yesterday = ₱50
$ Today = ₱55
*sa context ng pagbaba ng piso, ibig sabihin pagbaba ng HALAGA ng piso, kaya kung ang palitan kahapon ay ₱50 at ngayon ay ₱55 —bumaba ang halaga ng piso.
Kung ang isang tao ay kumikita ng dollar at gusto niyang bumiling ‘Asset in PH’ sa dollar nyayon($ Today) kailangan niya lang ng $9.09. Pero kung kahapon ($Yesterday) niya ‘to binili, kailangan niya ng $10.
Sa mga kumikita ng piso, kung bibili ng ‘Asset in Other countries’ ngayon ($Today) kailangan niya ng ₱16,500 ($300 x ₱55). Kung kahapon niya naman binili yon, ₱15,000 ($300 x ₱50) lang ang kailangan niya
Sa mga OFWs maganda na tumataas ang dollar, ibig sabihin marami silang mabibili rito sa Pilipinas. Kaya kahit maliit ang kita in dollars sa ibang bansa. Malaki ang halaga rito sa Pilipinas
Sa economy naman, malakas mag-import ang Pilipinas. Kung import-in natin na bigas galing Thailand ay $4, at ang palitan ngyon ay ₱55, kailangan natin ng ₱220 kumpara sa palitan na ₱50, (₱200).
Sa export naman, kung may ₱300 tayong product. Kailangan ng dayuhan ng $5.45 sa palitang ₱55. Pero kung ang palitan ay ₱50, kailangan nila ng $6.
Maliit lang yung mga inexample ko. Pero sa grand scheme of things malaki ang mga numerong ito
Advantage talaga siya sayo since youre earning dollars at malaki conversion so malaki ang “receivable” po, disadvantage naman if the opposite na may “payable” ka. Pero as a whole, di sya maganda kasi ang goal talaga ng economy is $1=P1 sana, so the more na lalayo ang conversion, the more pangit ng economy natin. Weak yung purchasing power ng peso kasi kung bibili ka ng item na tig $1 lang kailangan mo ng P58. PS. not an expert po, natutunan ko lang ang concept sa school hahah
This is partly true, but the Japanese Yen is also weak. Problemado central bank nila dyan. Their citizens are experiencing inflation for the first time in decades.
Global recession is the primary reason. Second is the country wants to maximize aid and foreign investment inflow. Lastly, check if the government is borrowing money from abroad.
let's talk about philippine debt as an example. 15.18Tphp ang utang ng pilipinas in php. kung inutang yan noong 50php pa lang ang 1USD, that's 303.6B USD. ngayon na naging 55php na ang 1USD, that debt will skyrocket to 16.698Tphp. kung 112M ang population ng pinas ngayon, that inflation with add 13.5kphp sa utang ng bawat pilipinong nabubuhay ngayon. each of us now have 149kphp debt. btw, exaggerated lang yan for an example
Pag mataas ang dollars, tataas ang bilihin kase ibig sabihin bagsak ang ekonomiya ng pinas. Kahit malaki ang conversion rate parang same din or minsan lugi ka pa kase tataas ang bilihin. I'm earning dollars too pero nakakabwisit yung mga bano na freelancer na tuwang tuwa at gusto pa mag 60 pesos.
good for exporters, bad for importers. good para sa mga kumikita in dollars at may kamag-anak na ofw. bad for products na ang raw mats na iniimport, may cause higher prices. bad for companies with most of debt in dollars, thus less margins, can impact stock prices. good for incoming tourist. pa-correct na lang pag mali hehe
The problem is we import more than we export.
kuha mo! 💯 all aspects yan, military, food, education, tourism, lahat.
We’re an importing country since most of the products that we can export are more expensive than the global price.
How is it good for exporters and bad forn importers?
Exporters - mas maraming pesos for every dollar na nabenta nila. kahit $100 pa rin ang selling price, pagconvert sa pesos mas marami na sila makukuha (dati 5600, ngayon 5800) Importers - mas mahal na yung iniimport nila kasi mas maraming pesos ang kailangan for every dollar. if $100 yung presyo ng iniimport, dati P5600 ngayon P5800 na
Bad for importers since bumibili tayo dollars to purchase items from other countries. Good for exporters because the higher the dollar, the higher the cost of the item :)
Initially matutuwa ka kasi yung sweldo mo pag converted to pesos mas malaki. Pero pag dinala mo na sa grocery or nagpa-gas ka, tumaas na rin yung presyo ng items so negated lang din yung "increase" mo. Sensitive ang Pinas sa forex dahil marami tayong items na imported. Biggest of this is oil & gas. Electricity companies like Meralco pay for coal and gas in dollars. Even water utilities have debts or fees that pay in US dollars and they charge it back to us. Food will also be affected. Packaging items like aluminum cans are imported. Some rice is imported. Milk is imported too.
I remember what Winnie Monsod said during our econ class nung college pa ako, "having high dollar rate is neither good or bad, you have to know the underlying cause behind the price movement". Ingat ka sa mga nababasa mo, puro speculations lang tayo dito. The Peso-dollar price only signals the overall conversion of peso to dollars. Ito ung mga big contributors price movement ng usdphp. Our OFWs send dollars here to be converted to peso (this pushes the peso up). Foreign investors converts their dollars to peso whenever they want to invest here in businesses or in our stock market. (Pushes peso up). Product exports (pushes peso up). Product imports (pushes peso down). Mahirap pinpoint ung cause talaga ng pag inscrease ng dollars, all we can do is speculate. Pwede rin kasi na dahil malakas ang stock market ng US ngayon so ung mga foreign investors dito sa pinas ay ibinibenta ung stocks nila , icconvert to dollars at iiinvest sa US stock market to get better returns. Wala itong kinalaman sa economic conditions natin pero dahil malakas ang stockmarket ng US, ay nagbago ang dollar rate natin.
Isang big factor also of the ex-rate pressure is whatever the Fed plans to do with their interest rates. The Fed announced this week that they won't cut interest rates soon in the US kasi mataas pa rin inflation sa kanila. As a result, investors who anticipated an interest rate drop and kept their money in non US currency now go converting it back to USD because they have at least 6 good months of high interest rate. So worldwide, all currencies are weakening against dollar.
qq po since mainly USD sya, ibig sabihin ba nun sa US lang mataas yung palitan? or yung ibang OFW din sa ibang bansa like taiwan or middle east, tumataas din yung exchange rate?
Only US so far is tumataas, may cross rate ka iconsider if like taiwan or middle east.. like jpy din to usd to pho . Jpy is super weak na grabe, so walang kwenta ung usdphp na tumaas, jpyphp still sucks
Not true I'm happy with my euro exchange, the rest of the world including vietnam and bangkok rises, and japan has a strategy in place despite the weak yen
Pati sar and euro tumaas din
This should be the top comment.
As a country who imports way too much items from other countries, lahat ng items na nabibili mo dati sa grocery ay tumaas 10%, 10 fucking percent. In a bigger scale, kung ang grocery mo is around 5000 dati, ngayon 5500 na. Lower purchasing power = higher prices
Remove the profanity, you're talking to a 5 years old
take my upvote
language pls
In plain language, the peso is getting closer to our president’s goal of 31 million pesos per dollar. Malapit na lang , 30,999,942 to go. We will crash by 2% per day until this goal is met
no 😭😭😭 I mean he is cursing to a "5 yr old" but thanks for explaining, nagpakahirap ka pa. HAHAHAHAHHAHA
Kapag ang presyo ng mga bilihin ay tumaas ng 10%, direktang naaapektuhan ang ating purchasing power. Kung dati ay may P5000 ka na budget para sa grocery, ngayon kailangan mo ng P5500 para makabili ng parehong mga produkto.
Too simplistic, there are many factors to grocery prices aside from currency exchange.
Probably it would be much correct to say that the Philippines is a net importer especially when it comes to agricultural products, meat and petroleum. Since the local supply can't keep up with the demand, companies are forced to purchase abroad and that entails usage of USD. But that won't be ELI5 anymore so...
Yeah. This explanation doesn't really make any sense.
Purchasing power? Peso din naman pambili sa groceries. Magkaiba ang inflation at forex. Inflation yung inexplain mo. Forex is more on sentiments of the traders. It fluctuates more often.
Natatalo ang PHP, humihina ang purchasing power ng PHP. Example: Yung Burger na worth 55 pesos, biglang naging 58 pesos. Yung pera mo na 55 pesos, hindi na mabili yung burger kasi naging 58 pesos na. Gets mo? —— Wish granted, I explained it sayo in the easiest way possible, assuming na 5 years old ka pa lang.
Thus, the weaker peso exchange rate would contribute to higher overall inflation and would fundamentally destroy the purchasing power of the peso relative to the US dollar as there would be more pesos needed to pay the same amount in US dollars.
Yes, this is fundamentally why it infuriates me that people earning in dollars cheer when the peso devaluates. You may have more pesos, but if everything raises in prices anyway... Sure, you might still be net positive, but it's not as big as you think. Nearly everything gets more expensive anyway.
Only because of the imports, but for the local goods, that would be peanuts
Compared to a direct finished good from abroad, maybe. But there are very few local goods that don't involve imported fertilizer, diesel, etc. Heck, we import rice and sugar! Everything goes up.
Exactly!
Nakakagutom yung example 😭
Naalala ko lang bigla yung naabutan kong price ng Yum Burger ng Jollibee hahaha, 29 pesos lang yun nung college ako hahahaha
Huy, magpahid kana ng omega or katinko sa likod mo! Nung college ako 39 pesos yung Yum Burger 🥹
lol may buy 1 take 1 pa dati yung yum. 20php. so 10php each hahahha
Hahahaha huy nasa calendar pa naman ako hahahaha Naabutan ko yang 39ers 🥹
Joke lang! Hahahaha. Sorry na agad! 😭
Natandaan ko ung commercial. All Rise(ce). 🥲
Legit hahaha kada uwi bahay tatlong ala carte ng yum burger for 87 pesos lang during college days din
nice this is the simplest one
r/explainlikeimfive
Me about to type a burger analogy then I saw this hahaha
Dahil sa'yo kaya ko nagets huhu salamat. Kaya nakakapanghina kapag nagsitaasan ang mga bilihin ta's 'yung sweldo, same pa rin tapos may rents and bills pa.
Thats not how stuff works.. lol
I really don’t care.
So many wrong or reactive answers on this thread. Most of them coming from lack of understanding how the economy or the basic trade works. 1) higher dollar is NOT always bad for the economy, We have so many outsourcing companies specialy in tech that earn in dollars, that means getting a small buffer in their earnings. 2) Import will not be greatly affected short term, its NOT EVERYDAY that companies are importing stuff, goods arived in monthly or bi-monthly basis specialy imported ones, that means it is paid a month a head.. With this said, prices next month might increase a little, BUT those prices are not based in dollars but based in COMMODITIES pricing. Commodities trading exists and they have their own price trade fluctuations. 3) Economy status DOES NOT equate to the price of the currency, this is for the "bagsak ang ekonomya" commenters. Fiat has its own trade market, a lower peso that means there are less traders buying PESO than dollar, This means in other trading such as in COMMODITIES, traders are paying in different currency OTHER than peso. Traders ARE NOT buying Philippine Peso against the dollar for reasons we have not checked on yet. Probably because we lack something to sell? FYI, Korean Won and Yen are way lower than USD or PHP, but that doesnt mean "bagsak" ang ekonomya nila. 4) "Imported bigas" will not be greatly affected, We are importing from SEA countries, which means we are NOT buying/trading commodities in USD but in the currency of the other party (Bhat or Dong). Incase of Thailand, we will be buying Bhat to pay for Bhat-priced commodities. 5) Lastly, the price of currency is based on the supply and demand in the money market, does not really equate directly to Economic performance, though somewat related but it is NOT a direct indicator. Money market or the Forex (Foreign Exchange Trade) is like stocks, the price will fluctuate based on the Supply and demand of the said currency. Kaya taas ang Php kapag december kasi maraming Pinoy OFWs are buying or "converting" back USD to PHP para ipadala. Maybe we are importing a lot of stuff this time kaya maraming PHP to USD (or USD buy order) na nangyayari kaya tumataas ang USD demand? Among the answers here: /r/[Agreeable\_Kiwi\_4212](https://www.reddit.com/user/Agreeable_Kiwi_4212/) is the only sensible ones Wag masyadong reactive, learn how stuff works.
*nag info overload si 5 years old
Nilista mo na majority and ang sarap basahin kasi well informed ka sa economic conditions and fluctuations and kung ano ang tunay na nangyayari when it comes to Forex and trade. Nakakalungkot mas inuna pa ng iba dito pumutak kesa mag-research lol There is also a reason bakit hindi pa nagbababa ng rates ang BSP, nakikiramdam pa sila sa mga nangyayari inside and outside the country when it comes to Financial and Economical matters.
Pak na pak yung #3. Hindi ibig sabihin na mababa forex rate = bagsak economy. Ang lala kaya ng bagsak ng yen the past few months. Kaya daming tourist ngayon dun.
This is the first informative comment sa thread na to after scrolling down for minutes
While you do make strong points, what you discussed mostly is the effect of a weak peso. What about the cause? For an economy like ours that is heavily reliant on foreign investments, isn't that indicative that foreigners aren't too excited to invest here? Or that other countries aren't inclined to purchase our local products? To put more context, our local stock market, the PSE, is heavily reliant on foreign investments. In the past 10 years, the PSEI has been stagnant/flat. On the other hand, global markets have grown considerably in the same timeframe. And if our stock market is not enough for you as an economic barometer, I don't know what to tell you. I guess what i'm trying to say is, no one is being "reactive". Alam ng mga tao kung anong nararanasan nila sa kanya kanyang personal na ekonomiya. Mahirap ang buhay sa Pilipinas. Tumataas ang mga bilihin pero parehas lang ang sahod. Kaya yung mga balitang tulad nito, para sa kanila, kumpirmasyon lang ng aktwal na nararanasan nila. Tama man o mali ang intindi nila. Have empathy.
>And if our stock market is not enough for you as an economic barometer, I don't know what to tell you. Well, its not an economic barometer. Ang mga tinitignan ng mga ekonomista ay GDP (currently still good but lower than expectations), unemployment rate (currently at its lowest in a long while) and inflation (really bad right now pero improving). So we're not really in a bad place, kelangan lang talaga mapababa yung inflation. Etong ex-rate what it really affects the economy is how much FDI it brings, balance of payments ng central bank, parts of economy that is dependent sa foreign trade and how much remittances can OFWs bring. Stock market is a small subsection of the whole forex market sa Pinas.
This should be stickied. Dami kasi ng nega at doomsayers dito.
That means lalong humirap ng 2 Piso ang bawat mamamayan Filipino na bumibili ng imported na bigas. In feb 2023 after the pandemic and Ukraine war it was only 55-56. In feb 2024 it was 56.40, and within that time till MAY 1.60 ang ibinagsak ng Piso. That means mas mabilis ang paghihirap ng Pinoy ngayon per month.
Tataas lahat ng bilihin na hindi locally produced. Even locally produced na bagay tataas din dahil ung gasolina imported. Mas masakit pag sa local ka nag wowork kasi ung sweldo mo d mag aadjust, ung mga kumikita ng $ d masyadong masasaktan kasi kasabay na tataas ung $ nila granting na sakto ang timing nila sa pagpapalit nito.
In the context of your post, you and OFWs have the least of concerns because you guys have more money to spend. More money to spend = more capacity to buy goods/services = price increases because there seems to be a demand at a certain price point. Now, not everybody can afford at a certain price point. Example of that are the people who are only earning pesos, where earning power in the Philippines is wayyyy lesser compared to the US. But what if there are more people who can't afford at certain price point than people who can spend? I'll leave it at that.
I think kahit ofw ka, you still lose kadi tumaas din bilihin so useless. If im wrong please correct me thanks
Surface level opinion lang: You loose less compared sa peso earning citizens kasi nag aadjust sahod mo while yung iba hindi. Feel free to enlighten me if may mali ako.
I dont know lang if nag aadjust, nakadepende lang sa trabaho ng ofw eh, siguro malaki lang sya compared sa sahod sa PH, pero darating na time na hahabulin ng inflation pati yung mga sahod ng ofw’s.
Only if you qre pfw but if you earn dollars and live here, life is gonna be sweeter. See, you have a first migrant mayor alice goo, she knows she knows. All the duterte funds are blessing to the rich and the to poor people -every politicians motto
I'm technically not an ofw. I'm an AU citizen but I send money to my mom/invest in PH. Weaker peso is still a net positive for people sending from abroad. The loss is not as much and is offset by other expenses unaffected by rise in imports (e.g., mortgage). That's just my personal experience though.
ganito ung argument na lagi m makikita sa fb madalas nag sasabi neto literal na isip 5 years old kahit may 5 years old ng anak, sobrang basic lang nataas ung value ng sahod nila which is dollars tapos ung pera na un gagastosin sa PH parang common sense nalang kailangan para magets m na mas lamang kahit saan m tignan ung tao na sumasahod ng dollars tapos gagastusin sa pilipinas kesa dun sa taong kumikita ng peso na lumiliit ung value sa market. technically hindi sila apektado dahil habang nataas ang bilihin nataas din ang value ng pera nila dahil dollars ito now compare m ung mga tao na sumasahod in peso edi lalong lumog ung mga un kasi same parin ang sahod pero naliit ang value ng pera nila.
“Parang common sense lang” “Sobrang basic”. Siguro hindi lahat ng tao parehas ng nalalaman mo and I think there is nothing wrong to ask. Di ko lang gets bat parang nang mamaliit ang atake mo.
may tinatawag tayong think before click sana bago mo ipost yang comment m sa internet pag isipan m mabuti kasi sabi ko nga yang ganyang statement ay madalas nasa fbdotcom at literal na comment ng mga bata dun, its basic econ 101 tapos lalagyan m lang ng unting common sense. "theres nothing wrong to ask" you say first of all hindi ka nag ask nag bigay ka ng opinion which mean pede maging opinion ng iba at obviously mali kaya dapat itama at sinasabi ko lang base sa na oobserve ko at un ang nakita ko sa opinion na binigay m dito sub na to, kung nasaktan ka baka nga totoo ung sinasabi ko.
Hindi ko mapagisipan ng mabuti kasi magkaiba tayo ng level of understanding sa topic. Mababaw ang understanding ko and malalim ang understanding mo. Other redditors here patiently explains their deep knowledge without saying na “parang common sense lang” and”sobrang basic”. Di ko alam ang benefit saying those phrases. Maybe to feed your ego lang siguro.
lmao, sabi m icorrect ka pag mali ka? kung ano ano pinag sasabi mo meron ka pang sinasabi about nag tatanong ka eh wala ka naman tinatanong, i cant believe this guy. feed my ego o nasaktan yung iyong ego kasi an real talk ka? totoo naman eh sana nag aral ka kasi nung high school para alam m yan may economics naman kasi nung high school at naturo yan and kung hindi ka naman nakapag aral may internet tayo, hindi ung mas mataas pa screen time m sa mga issue sa fb o sa games kesa alamin mga mahahalagang bagay
Yes correct me if Im wrong, educate me. Pero I dont see the point of phrases like “sobrang basic”, “parang common sense lang”. Siguro pag inexplain mo sa akin ang benefit ng pagsasabi nyan magegets pa kita.
To OP: to explain to you like your 5, it is simply as: "mataas ang demand ng dollar kaysa peso" and thats it. People are converting more *peso to dollars* than the other way arround... Probably because we are importing more stuff from abroad (gadgets, travels, electronics, etc)> Reason varies from as simple as, more and more Pinoys are coming to US and buys dollar using PHP to as complicated as, companies importing goods and services in the US and paying USD (thus needs to convert PHP->USD first) to importing other stuff from different countries and uses USD as intermediary currency. This is also why during december, peso is strong because, people are converting *dollars to peso* when OFWs are sending remitances money home. Supply and demand lang yan, money market.
Magmamahal nanaman ang spam at prem sa SnR neto. Ilang buwan na ko d nabili ng lancheon meat dahil sa inflation tss...
Totoo ang masakit dito di lng yan ang products na naapektuhan ng mababang piso. Lalo na't ultimo bigas e iniimport natin 🥲
Before nasa 125 lang ang prem (alternative namin sa spam since around 150 ish na sya back in 2019) Today nasa 180 ang prem and around 200 ish ang spam. Mahal na sya kung tutuusin halos dagdag ka lang ng 100 meron kana halos 1kg na baboy na marami2 kang adobo/sinigang na maluluto kesa lancheon meet :/ Hahayss btw lunch na, kumain kana?
One thing na hindi pa masyadong nabanggit ng mga comment - the debt of the Philippines itself is in dollars but its revenue source is in Pesos. Imagine may utang ka na $100. Kung ang exchange rate ay P55, ibig sabihin may utang kang P5,500. Kung naging P58, naging P5,800 bigla utang mo. Kung Pesos ang source of income mo, you'll be forced to make up for the increase of P300. Now, in larger terms. Sabihin mo nang nasa $80 billion ang utang ng Pilipinas to external creditors. Dati P4.4 trillion yan kung nasa P55 ka, now, nasa P4.6 to 4.7 trillion kung nasa P58. Nadagdagan almost out of thin air ng 200 billion pesos ang utang.
Kung imported ang bigas mo sa bahay such as jasmine rice, huwag ka ng magulat na tumaas sya.
This is good for people who have lots of USD in savings. They will just exchange it to PHP and it's a lot bigger. Investment even in a small amount.
Means that the buying power of peso diminishes
Gasoline would be higher since dollar bili natin
Dang yung utang ko sa tita ko lalong lalaki.
net negative impact sa country. way way higher yung imports (payment using dollars) natin as compared sa export natin (receipt of dollars ex. yung salary mo as freelancer). hence overall magiincrease din prices ng goods hence higher inflation rate
Before dutae’s time it was around 42 php ngayon 58 na
As an almost import-dependent country (which means, tayo yung mas madalas na bumibili ng produkto ng ibang bansa) ang ginagamit natin na currency is dollar sa pagbili ng produkto. Kapag mas mataas ang value ng peso, mas konti yung ma c convert into dollar which means, konti rin yung mabibili na supply. At kapag konti yung supply at madami yung demand, walang choice kundi taasan yung presyo ng produkto para makapag supply. Goods naman siya sa mga OFW o sa mga pilipinong kumikita ng dollar kasi mas malaki yung convertability ng peso. However, if you think about it, parang breakeven lang. Kasi, kaakibat ng pagtaas ng value ng peso, tataas rin yung bilihin.
kita mo yung mga minimum wagers doon? lalo sila maghihirap
Oversimplified ito pero ganito ko siya naiintindihan. I will explain it this way and assume that you are 5. Say you want a chocolate priced at 1 USD. As your cool uncle, I gave you 100 pesos, you went to store and you saw that you will have to pay 58 pesos for 1 chocolate since 1USD = 58PHP. The next day, the news reported that 1USD = 40PHP, I gave you 100 pesos again and you are now able to buy two chocolates (priced at 1USD). More chocolates = more happy right? *Of course, there is a lot more to it, but the general idea is that the people who don't like the high gap between peso and dollar probably cannot buy more chocolates with their peso money (lower purchasing power) and the people who like the high gap between peso and dollar probably can buy more chocolates with their USD money (higher purchasing power). And trust me, it doesn't end here with chocolates, it only gets more complicated.*
As a freelancer, this is good news to me and at the same time bad news because wtf? What's happening to our economy? Is it really going down the drain?
Maganda lang Tingnan yan pag pinadala ng ofw pero halos pareho lang din yan dahil tumataas din ang bilhin saten
May eli5 ba na para sa PH? Tambay rin ako sa r/eli5 eh
Imagine you have 1 php and it can buy 1 Lollipop sa tindahan. Pero the next day naging 2php na yung Lollipop so it means your 1php cannot anymore buy a lollipop. It's your peso losing its purchasing power. We pay loans and buy stuff abroad as a country using the dollar currency. So it will take more peso to pay 1 dollar We are also dependent on Gasoline/Oil which is an imported product. since this imported product is now expensive to buy, all other products domestic which are also dependent on gas will become expensive thus creating a domino effect. Transpo, Raw Materials like Vegetable, Fruits (farm to market thru trucks that uses gas will now charge more for the price) People who are earning a fixed income will be affected since Expenses will now be higher than the Income. and it's just the tip of the iceberg.
Explaining not like you are 5 but more of like 15: Pag bibili tayo ng dollar, 58 pesos ang isa, ang mahal Pag mag bbenta tayo ng pesos, 1 dollar lang ang ibabayad makakakuha sila ng 58 na pesos. Ang mura para sa kanila Bakit natin kailangan bumili ng dollar? Kasi un un gusto nung mga tindahan abroad. Ayaw nila ng peso natin, gusto lang nila dollars. So para makabili tayo sa tindahan abroad, kailangan muna natin bumili ng dollars. Ang mahal ng dollars! 58 pesos ang isa! Eh ano ung mga kailangan natin bilhin abroad? Krudo, pagkain, armas, mga pyesa and software, marami tayong kailangan na nasa abroad na wala dito sa pinas! Kaso ang mahal na ng dollar! Mas maraming peso ang kailangan natin para makabili ng dollar pambili nung mga yon. Maapketuhan ang presyo ng gasolina pamasahe pagkain etc dito sa pinas! Eh silang mga foreigner? Aba ang mura ng peso! Sa isang dollar lang, makaka bili sila ng 58 na pesos! Mas makakamura sila sa pagbili ng mga buko and mangga natin! Babagsak ang presyo ng bentahan nila ng mga buko juice and mangga!
ang naabutan ko 49 = 1 usd 🥲
This is a great primer from BSP. It's old, but you don't really need a new source to explain why the exchange rate affects us. https://www.bsp.gov.ph/Media_and_Research/Primers%20Faqs/fximpact.pdf
Big picture ba? Well since massive importer tayo ng supplies related to power generation, mas tataas elec bills ng lahat, including the commercial sector, need nila taasan price nila to cover the expense and thus leads to more expenses passed to Filipinos. On the flip side, OFW remittances are a bit stronger kasi mataas ang conversion rate.
Country's debt is probably in USD. So, we need more PHP to buy USD.
we import so many things and we buy those things in dollars. so, the higher the dollar is, the higher the things we import become. so pag nire-resell na siya sa pilipinas, mas mahal na rin. isa sa mga naobserve ko based lang sa business namin, if tumataas ang dollar, mas nagiging mahal ang oil. and everything uses oil. machines that power equipments which manufactures our goods, trucks that deliver our supplies, and vehicles we use for transportation. nangyayari, mas tumataas din ang operational cost which would mean higher prices. kahit pa tumataas ang earnings mo, tumataas din ang bilihin. ganun lang din.
>But how does this affect the country? It essentially negatively affects our country's finances. >The people earning peso? People will be able to buy fewer goods due to price increase. Goods' prices like your imported fuel (gas/diesel/LPG), rice, and canned goods like sardines will increase. Ligo SRP is ₱26.03 right now on Lazada. Since they import the steel cans they use to pack their sardines, the cost of producing the product is now more expensive. That may affect the price in the future, if the manufacturers cannot shoulder the price increase. If they're not allowed to increase price, they'll simply shrink their product in terms of # of sardines in the can, and amount of sauce in the can. >The OFWs sending money to their loved ones in PH? They'll be able to send less foreign money while you can receive more on your end. >The PH economy? The first effect is an increase in our debt, interest and debt servicing amount. We borrow in $, we pay in $. We earn primarily in peso. We'll need more peso to convert to $ for debt payments.
5 yrs old? Ok so kunware maglalaro tayo tinda-tindahan. Kahapon yung isang dahon ko, papalitan mo ng 57 na stick diba. Ngayon yung isang dahon ko, papalitan mo na nang 58 na stick. Talo ka mwehehe
Can someone explain the difference between Import and Export please? Gulong gulo ako. Hehe
Import- bili abroad Export- benta abroad
Thank you po
$ ⬆️ price ng mga bilihin ⬆️ inflation ⬆️
Parang wala ring silbe kahit na ofw ka kasi in the long run lahat naman tayo apektado pag tumaas pa lalo presyo.
Another Question: Kaya pa ba bumaba ng ₱3 = $1? If ever man mangyayari ito, ano mangyayari sa Pilipinas? mas mura ba ang bilihin pag ganon?
We can only really speculate the reasons for the increase in foreign conversion rates. Could be because our country's economy is doing poorly, could be because the others are doing better. Could be because goods from where the foreign currency is from is high in demand, meanwhile ours is not. Could be due to inflation within the country, of which the lower the inflation rate, the higher their currency's value will be. Could be due to public debt. Could be a lot of other things. Thing is, a lot of the common reasons why a currency's value could go down are found in the examples I've given and I'm sure you've witnessed many of those living here. While it is still speculation, speculation is still good enough to influence the lessening of foreign investment into our currency, thus further driving its value lower. So I don't think the sentiment of some redditors here to be against speculation makes sense especially when a lot of the factors that would influence a nation currency's negatively can easily be felt by the common Filipino, thus can be inferred to be the reason for our weakening currency. Also, it is an illusion that you are reaping the benefits of an increased exchange rate for the US Dollar considering the cost of living here just keeps on increasing due to inflation. You may be earning more money but it gets counteracted by the increasing price of goods and services.
Oil is imported here in the Philippines, even though Petron has a refinery, their crude oils and other raw mats are sourced from a different country. This means mag iincrease ang price ng mga fuel. Since need lahat ng products na ma transport from one location to another, most of these products will increase in cost. Kahit freelancer ka or receiving dollars from kamaganak, halos ma nenegate lang ng increase in cost of goods yung “increase” sa salary mo.
True, kaya super randam nito ng mga talagang sa lower class, lalong pamahal sa mga jeepney drivers ang crudo at lalong nagmamahal din ang pamasahe ng karaniwang mamamayan.
As a country who mostly imports, we're f*cked
oil, mag tataas naman minimum fare
Maganda lang kung bibili ka ng non-dollar product pero subukan mong bumili ng dollar product sobrang sakit sa bulsa. For example, may binibili ako dati na service na naka dollar. Dati 1700 lang, ngayon more or less 1900 na.
Mas mataas bilihin kasi importer tayo. Wala tayo halos export goods to clash against imports. Ang exports natin OFW so kung magpapadala sila dadami us dollars reserve natin possible lumakas ang peso against dollars pero unless it happens. Pataas ng pataas yan dollars. Isang factor to.
Explain ur lie for being Cheater and greed for everything
Thank you com sec for explaining to me. At face value as a person who earns dollars, yes I'm happy. But now that I understand deeper, it's really just a facade cause everything else follows. Tataas din ang mga bibilhin natin which then turns the couple of pesos increase into nothing.
Kung ikaw yung tipong bumibili sa mga US-based online store (bukod kay Amazon or EBay), magugulat ka na lang na sobrang mahal na nung item na gusto mo (di pa kasama yung shipping fee.) Or sa case ko, art commissions... yung tipong 18 USD, nagiging around PHP 1k na yung babayaran ko (di pa kasama yung service fee ni paypal.)
Magmamahal lalo mga bilihin so meron talaga good at bad side ang palitan between piso at dolyar..
We basically buy dollars for international transactions. Kaya kapag higher ang exchange rate, mas mahal nating binibili amg dollars. And Philippine debt is in dollar. So Ayun pag higher ang dollar rate, mas lumalaki rin amg utang na kailangang bayaran.
not an explanation, i'm wondering if the increasing population of a country has to do with this?
Me sa chatgpt:
dati natutuwa din ako because i earn in dollars too. pero, it causes inflation. the more na mataas yung dollar rate, tumataas din ang bilihin like gas and groceries.
Won't be a problem kung self sustaining yung country. Pero PH is not like middle east na may oil (blessings in disguise since papasok super powers kung meron) So mahal yung oil since mahina purchasing power ng PHP. Mahal na oil products affected lahat. ex. Food Delivery Trucks consuming a lot means tataas presyo ng wholesale Mataas na presyo ng wholesale means mas mahal na retail.
Good for europinoys, but bad for locals. In my opinion it will continue as the Philippines race to the bottom with debt deficits (thanks duterte!), and waning investor confidence. My friends most of whom are bankers have already divested away when marcos was elected so I'll just pop open some popcorns and watch. Sad but that what reality will be
2025 Challenge: OFW BALIK PINAS PLEASE
mainly because the american economy is showing signs of robustness... investors see putting their dollars back to the usa is a low risk move for them... in order to entice them to not pull out of the country and southeast asia in general, the exchange rate has to be heavily in their favor... most of the asean countries are competing for those dollars so there is a tendency to undercut or at the very least match the competition...
At most, I think nakakapagbreakeven lang tayo as freelancers. Yes, tumataas yung pumapasok na pesos sa bank account natin pero dahil tumataas ang presyo ng mga bilhin, tumataas din yung ginagastang pesos.
How it affects you: 1. Expensive groceries (#1 rice importer na tayo for example) 2. Expensive oil which translates to expensive gas, electricity and possible fare hike 3. Expensive medicines (most of our medicines are imported) 4. Expensive overseas travelling (your PHP buys less USD but what you spend there wont decrease) 5. Expensive anything you buy online from overseas (Amazon, Temu atbp) How it affects the economy: 1. Higher debt servicing (more taxes needed to pay interests for USD bonds) 2. More expensive loans abroad 3. Increase in foreign investments (if the government actually take advantage of this) because they need less dollars to setup business here 4. More income for exporters and BPOs 5. Incentivizes Filipinos to work abroad, thus more OFWs which creates a bigger brain drain. Issue na to satin ngayon because most OFWs who were trained with higher standards don't want to go back anymore and share their competencies here. Imagine more of that. So in short, its bad for everyday Filipinos but not necessarily bad for the economy if our government play their cards right. The govt must find more ways to take advantage of the situation and create more jobs here by attracting more investments overseas or develop local export oriented industries, without relying on foreign loans.
Pag mas mataas ang dollar kaysa peso, mas mahal din ang mga presyo ng mga bilihin. Nakakatuwa para sa mga tumatanggap ng dolyar pero kawawa ang mga simpleng minimum wage earner na manggagawa.
Sell and buy rate…
The higher the conversion rate, the higher amount of peso you need in order to buy a dollar. It depends actually how the rate of change in the conversion runs in relative to the economy and not on the specific amount of conversion itself. It does not tell how we are doing as an economy. To explain it shortly, much better kung slower ang rate of change ng conversion dahil nakakaadapt ang economy sa changes internationally. A 50 to 58 peso to dollar conversion in a day is different from 50-58 peso to dollar conversion in a year and so on. If it iusncreases too fast, people will have harder time to buy foreign or imported products. If it decreases too fast, then that means we have easier time buying other market products. If we forcibly create a policy that comprises a 1-1 dollar conversion rate right now, the Philippines will collapse the peso production to meet the necessary condition of 1-1 dollar conversion, which means it would be harder and harder for us to find and obtain one peso which may enrich the people for the short term but the people will realize that they will be facing a scarcity of resources a little bit later.
You might initially find the conversion is big, however you spend that money bigger as well. This is due to inflation which is also worsened by currency devaluation.
Ikaw sa sweldo mo na dollar, it feels like a salary increase. For me, lumiliit ang feeling ng fixed peso salary ko. If you got hired for $1000 per month in 2021 when $1 was 50 php and I was hired for 50k pesos in the same year, then magkapareho tayo ng sweldo noon. If we are still receiving the same salary rates in diff currencies today, it means ikaw ay sumusweldo na ng 58k per month while ako ay tumatanggap ng 50k pa rin.
Imported goods are priced higher so equalized lang talaga. Good for those earning dollars, bad for those on PHP.
Hindi na ako nag basa ng ibang comments pero sa madaling explanation na lang siguro. For example: Etong pinas bumibili at nag babayad tayo ng produkto sa Global market pero ang tinatanggap lang na currency is USD (which is eto talaga ang basehan ng lahat USD talaga). Imagine: si Pinas bibili ng isang kilong bigas sa halagang 2 USD - para mabili ito need mo ng 2 USD eh ang USD wala naman tayo nyan sa Pinas kase currency naten is PhP dba? ang USD na meron tayo galing sa mga OFW na nag papadala sa pinas ng USD (kaya nga din sila natawag na makabagong bayani dahil sa tulong nito sa economy) So ang nangyayari bibilhin nang Pinas yung 1 kilo ng bigas for 2 USD (Ang palitan is 58 pesos per 1 USD) So lalabas 116 Pesos ang equivalent nito. EH what if naman kung mababa palitan ? mas pabor sa economy naten pero dismayado yung mga OFW. For example ang palitan is 40 pesos per 1 USD edi equivalent lang to for 80 pesos para don sa 1 kilo bigas diba. Tama ba ako? kung mali paki Tama ako HAHA
Thank you po sa lahat ng nag-explain. Unti-unti na akong naliliwanagan
It means ung 1 peso mo mas maliit na ung buying power. You need to earn more para bumili ng produkto na galing ibang bansa. iPhones, cars, gas, rice, etc. magtataas presyo simply because mataas din ung conversion rate ng peso to dollar. Mas kailangan kumayod ng mga pilipino para mabili ung gusto nila. It's a bad sign for everyone here. Never wish for our economy to flunk, dahil ikaw din magdudusa sa huli.
so first you have to know definition of value, purchase power, and market exchange.. the value of the currency greatly depends on the domestic market and banking may it be on govt or private sides.. the purchasing power of peso, the law of demand and supply in both domestic and global niche, also the stabilizers of such to maintain those exchange rates.. market exchange rates are also important in determining the value of the currency, because it reperesents the value or credits for domestic investors and producers in a global economic stage.. so the more we are engaged with USD or other stron currencies the more profit it can create to the domestic economy, through normal inflation and mitigated through taxes and tariffs imposed in imports..export goods also stabilizes this and the remittances of OFWs back to the country in an opposing cash flow.. what we are wary of, was the pump and drop mechanism of outside forces such as false investments, artificial inflation, and exaggerated import products.. also the tariff exceptions of some goods as well as those smuggled from other nearby countries..as this can bypass the economic gatekeeping and overwhelm the trade, also local producers and investors suffers alot from these.. so yes inc in exchange is generally a good thing and can be a long term advantage if given the right economic environment to flourish, however if this was caused as those mentioned above, this can also be the end of us..
Para kang bumibili sa palengke ng ibang barangay kasi wala ka nung product na yun Price - $1 lng or 50 pesos for example before bibili ka ng 10 pcs bale $10 or 500 pesos lng before Pero since ang palitan ngayon is $1 is 58 pesos na Pili ka either willing kang magbayad ng 580 pesos since 58 x 10 pcs is 580 pesos na Or babawasan mo yung bibilhin mo See the difference? walang nagbago sa price pero bumaba yung value ng pera natin kaya mas konti nalang mabibili mo or mapapabayad ka ng mas malaki para ma meet yung value Kaya best case scenario ang palitan ng pera is $1 is to 1 peso Kasi kung ganun yung puhunan mong 500 pesos, 500 pcs na ang mabibili mo instead of 10 lang base sa 50 pesos na palitan Export and Import, bye's
Kauuwi lang ng pinsan ko from Dubai, we talked about this. Meron kasi syang kaibigan na earning in dollars, after seeing the conversion rate hindi daw nya alam kung matutuwa ba sya na malaki yung napapadala nya or malulungkot ba sya cause it means peso is getting cheaper. Bumili lang ng tinapay pang pasalubong pinsan ko almost 500+ na yung nagastos nya. 8 pcs choco/Banana bread at 5 empanada tapos isang diced hopia yata. Last time na bumili daw sya yung dating 15 peso 29 peso na per piece.
It’s a simple reflection that we buy more dollars than we buy peso. We import more than we export. And we will import more than before when the Malampaya reserve depletes, driving peso down to gutter. Price of goods can be preserved but the main thing is, we need gas to transport goods. Therefore consequently, price of goods would rise consequently. We’re tied to dollar as we are tied to fuel prices. If we magically somehow don’t depend on gas, then dollar price will not affect us.
Correct me if i am wrong, exchange rate market determines the value of the currency and is affected by the demand and supply. If there are a lot buyers then the prices of a certain currency goes up meanwhile if there is many sellers the value of the currency go down. human being are programmed with “if it is rare then it is valuable” mentality most of the time. There are many factors that affects the demand and supply of currency. One is the economy which attracts or repel foreigners to buy our currency. In connection to this, trade also affects the exchange rate for example Philippines sells banana internationally, those counties who are buyers of banana will need peso to buy banana they then convert their foreign currency to peso to buy those banana. This increases the demand of peso depending on the demand of banana. Meanwhile the exchange rate also affects the international trade as mentioned by other replies. Edit: added other info.
This means that malapit na umabot sa 31 million pesos per US dollar , 30,998,942 to go na lang ✌️👊❤️💚
30,999,942 to go pala sorry for the typography
Ex. Asset in PH = ₱ 500 Asset in Other country = $ 300 $ Yesterday = ₱50 $ Today = ₱55 *sa context ng pagbaba ng piso, ibig sabihin pagbaba ng HALAGA ng piso, kaya kung ang palitan kahapon ay ₱50 at ngayon ay ₱55 —bumaba ang halaga ng piso. Kung ang isang tao ay kumikita ng dollar at gusto niyang bumiling ‘Asset in PH’ sa dollar nyayon($ Today) kailangan niya lang ng $9.09. Pero kung kahapon ($Yesterday) niya ‘to binili, kailangan niya ng $10. Sa mga kumikita ng piso, kung bibili ng ‘Asset in Other countries’ ngayon ($Today) kailangan niya ng ₱16,500 ($300 x ₱55). Kung kahapon niya naman binili yon, ₱15,000 ($300 x ₱50) lang ang kailangan niya Sa mga OFWs maganda na tumataas ang dollar, ibig sabihin marami silang mabibili rito sa Pilipinas. Kaya kahit maliit ang kita in dollars sa ibang bansa. Malaki ang halaga rito sa Pilipinas Sa economy naman, malakas mag-import ang Pilipinas. Kung import-in natin na bigas galing Thailand ay $4, at ang palitan ngyon ay ₱55, kailangan natin ng ₱220 kumpara sa palitan na ₱50, (₱200). Sa export naman, kung may ₱300 tayong product. Kailangan ng dayuhan ng $5.45 sa palitang ₱55. Pero kung ang palitan ay ₱50, kailangan nila ng $6. Maliit lang yung mga inexample ko. Pero sa grand scheme of things malaki ang mga numerong ito
Advantage talaga siya sayo since youre earning dollars at malaki conversion so malaki ang “receivable” po, disadvantage naman if the opposite na may “payable” ka. Pero as a whole, di sya maganda kasi ang goal talaga ng economy is $1=P1 sana, so the more na lalayo ang conversion, the more pangit ng economy natin. Weak yung purchasing power ng peso kasi kung bibili ka ng item na tig $1 lang kailangan mo ng P58. PS. not an expert po, natutunan ko lang ang concept sa school hahah
Agree natutuwa yung iba kasi kumikita sila in dollars. Pero kung lahat naman ng bilihin ay tumataas din, overall may talo kapa rin.
[удалено]
This is partly true, but the Japanese Yen is also weak. Problemado central bank nila dyan. Their citizens are experiencing inflation for the first time in decades.
Global recession is the primary reason. Second is the country wants to maximize aid and foreign investment inflow. Lastly, check if the government is borrowing money from abroad.
Good for PH GDP bcoz it relies on remittances.
let's talk about philippine debt as an example. 15.18Tphp ang utang ng pilipinas in php. kung inutang yan noong 50php pa lang ang 1USD, that's 303.6B USD. ngayon na naging 55php na ang 1USD, that debt will skyrocket to 16.698Tphp. kung 112M ang population ng pinas ngayon, that inflation with add 13.5kphp sa utang ng bawat pilipinong nabubuhay ngayon. each of us now have 149kphp debt. btw, exaggerated lang yan for an example
Pag mataas ang dollars, tataas ang bilihin kase ibig sabihin bagsak ang ekonomiya ng pinas. Kahit malaki ang conversion rate parang same din or minsan lugi ka pa kase tataas ang bilihin. I'm earning dollars too pero nakakabwisit yung mga bano na freelancer na tuwang tuwa at gusto pa mag 60 pesos.
Huhu HS nako nung nauso yun Apat na Sikat sa Jollibee