To those earning in or holding US dollars, brace yourself because the Philippine Peso might appreciate some more and even increase to P38 by next year.
That’s according to a BusinessWorld article published today:
The peso may appreciate towards P41.50 per dollar by year end and to as much as P38 by early 2008 as dollar remittances from overseas Filipino workers (OFWs) and inflows from the asset sale of local firms surge.
“The surge of dollars gives support to the thought that the peso will be stronger than what it is today… Itâ€™s a more sustainable trend right now,” Michael G. Manuel, chief investment officer of Sun Life of Canada (Philippines), Inc. told reporters yesterday.
Mr. Manuel attributes the possible appreciation of the Philippine currency to the sale of assets by local companies, increased remittances of Overseas Filipino Workers (OFW), and expected interest rate cut of the US Federal Reserve.
San Miguel Corp.’s sale of its stake in National Foods, Del Monte Pacific and Coca Cola Bottlers this year generated about $2.6 billion, while the government’s sale of its stake in Masinloc and Calaca power plants in the third quarter added $1.2 billion to the local economy.
More dollars are expected to flow into the country in 2008 as OFW remittances are predicted to grow by 5% from this year’s $14-billion projection.
The anticipated rate cut of the US Federal Reserve in December is also expected to bolster the peso. The Fed’s half-point key policy rate cut in September pushed the peso to P44.90 from P47 per dollar, while the 25-basis-point cut in October caused the peso to strengthen to P43.50 per dollar.
The peso appreciation will surely affect OFWs and local merchants and earners who receive payment in US dollars.
Tell us: Are you ready for such occurrence? How are you preparing for the expected appreciation of the peso?
(Later this week we’ll post an article containing some tips on how to deal with the falling dollar.)
12 thoughts on “Peso may rise to P38 in 2008”
Are you kidding me? I’m doomed. I’m getting ready to rid of my low-paying gigs or else I’ll be working thrice as hard to make what I’m currently earning. Hay naku. Buti kung nagmumura ang bilihin. Last month lang, ang mantika, 38 pesos lang, ngayon 45 pesos na! Iniisip ko tuloy, ano kaya kung sa tabloid na lang ako magsulat. Baka mas malaki pa kitain ko sa pagsusulat sa Tiktik o kaya Xerex kung tutuloy-tuloy to.
aray!!!! grabe pataas ng pataas parin ang bilihin sobra na ito, luging lugi na talaga ako.
dapat pala, iconvert ko na sa peso yung nasa dollar account ko. will just leave the maintaining balance.
Ouch. This is really a big factor for OFWs and Netrepreneurs earning dollars.
Actually, I don’t really mind the peso getting stronger since it means our country’s economy is prospering. But if that happens, the prices of goods should go down too. That’s in the law of economics, isn’t it?
Only here in the Philippines do I see that our economy is getting stronger while prices of goods continuously increase.
This is not fair for our OFWs. Tsk tsk.
Anyway, I’m deciding if I should convert my dollar investments to peso accounts since the appreciation of peso will surely affect the appreciation of my investment. 🙁
@marghil yes, that’s a sound move! better convert your dollars into peso and invest it wisely. If you still hold on to it you may find your dollar yields eventuallym eaten-up by the appreciation of a strong peso.
madali mo naman iconvert uli into dollars pagkailangan mo na ulit. :o)
My dollars..oh no..:( Shall I withdraw them now or wait until next year? 🙁
You might as well convert them now while you can still get a better fair value.
You may then choose to invest in the different types of portfolio in the investment universe where you can park your money to earn for you. Believe me, there are more high yielding funds where you can park your money and earned good returns other than banks which only gives you a measly guaranteed interest.
If you are up to it, it would be advisable if you will have a fund manager to handle your financial planning and wealth accumulation goal.
If you’re interested, you may want to try Sun Life Financial, through the undersigned, for you to be able to get a headstart in taking advantage of the opportunity behind a seemingly imposing predicament.
You don’t have to invest immediately with a big amount. Try investing muna a portion of your investible dollars with us. Just test the waters first, afterwards if you feel comfortable enough with our company’s expertise, then you can decide if you’ll stick with us for the long-term. kumbaga, subukan muna para malaman talaga if okey. I think that’s fair eneough isn’t it?
Feel free to email me at firstname.lastname@example.org or text/call me at my mobile no. +639175803858, I’d be glad to be of service to you.
well, Im hoping and praying that the peso will be stable at P38 to $1 and goes up to P20 to $1 and later become P1 is to $1…nang maramdaman ko nman kung anong feeling ng P1 is to $1…and become one of the strongest republic in the world and whole asia…god bless Philippines!!!!!!!!!kaya yan its not just a dream..
If $1 is equal to 1 Php then 1 liter of gas might be 45 USD!!! WOW! THAT WOULD MAKE THE PHILIPPINES THE BEST IN THE WORLD!!!! hahaha… peace!
is there any update to this? I think Peso for the past 5 months is depreciating fast and out of what was predicted in 2007.
Don’t be fooled by prediction with more than one year horizon. My experience is that prediction is only good for 6 month horizon. Also be careful on the motive on the one given prediction. Michael Manuel is working on hedge fund business. His company may have large stash of dollars that he is trying to dispose that is why he making such statements.
If it is true that the dollar is appreciating, he would keep this information to himself so that it is the his company will make the killing 🙂
It is hard to imagine. It is now 2009. There are lots of factors that could affect the inflation and the Peso-Dollar exchange.
Nothing to worry just keep on your business and do good! Hope this case will be ended.