From Norma:
We are ofws and we attended a seminar given by one bank 2 years ago and their forecast then is that the dollar will go up to 70-75 range. What will happen if I change our savings now in to peso and then dollars will go up to 50 again.. We are so confuse so better not to look at the exchange rate. Our govt. kept on telling we re heroes but kpt on bleeding us to death.
From surebull:
Well, with the way things are going now I don’t think we have a choice. We have to stick to our peso investments because it seems that Glorieta is determined to hold the Peso below 50. SONA is coming and she will certainly boast it there the peso appreciation. I am not sure however if she realizes that what she’s doing is actually hurting some sectors of our economy particularly exporters of goods and services. I just pray that the “positive impact” of strengthening peso will be felt by the masses in their daily lives, but everyone knows the reality.
Allow me to address your questions directly in a blog post. I read a lot of emails to me that air out concerns similar to yours and my heart bleeds with sadness at the things that misunderstandings can create. Let’s get angry with the right persons for the right reasons. The flip side is to give credit where credit is due. We can use human energy much more effectively that way.
One of the most common misconceptions among OFWs is that the government controls the peso. It does not.
The foreign exchange market is ruled by the rules of the market, not by any country. It is a result of how the economy is doing and how other markets like the US, European, Japanese countries are doing. The peso, for example, is not the only currency that is gaining strength against the dollar. The dollar is the one that is weakening, and that is affecting most currencies across the globe. The most that the government can do is to smoothen out the peaks and lows of the currency that may or may not result from speculative attacks. But even then, it cannot successfully affect where the peso will go.
I have long ago realized that obsessing about what the government has failed to do is not going to make any of us any wealthier. I guess there are journalists who can do that much better than I can — the PCIJ for example, and other media groups. The Philippine Daily Inquirer has published articles that have taken crack shots at the government and have obtained results. Me? I’d rather focus on financial literacy, writing about things that can make someone more informed about investing NOW, get someone out of the clutches of a scam artist NOW, teach people how to pay themselves first, and so on. This way, somehow, I can bridge, in my own little way, the savers with the financial advisers of the rich.
Was that a mouthful? Sorry, I got carried away. 
Also, remember also that banks can only “forecast” what the peso-dollar rate will be. Not one of them has a crystal ball that can predict the future. Forecasts are helpful, but listen to them with a grain of salt. Keep your ears on the ground and your eyes on the ball. (Never mind if you become a contortionist that way. )
Read newspapers often, especially the business section. Remember, however, after all is said and done, its better to save money whether in pesos, dollars, or euros and other currencies, even with the prospect of losing some of the value due to the friskiness of the markets, than saving nothing at all.
As we are all fond of saying here in MoneySmarts: money is just money. It is merely a tool so that we can enjoy life!
August 10th, 2007 at 8:40 pm
@PBF
for us earning here, i cant say they’re getting cheaper though. yes the peso equivalent for those gadgets may have gotten lower. but our salaries and prices are still in sgd right? hindi namaan tinaasan sweldo namin dahil lumakas ang piso e.
but for those back home na magpapabili. then yes, gadgets have definitely become much cheaper.
btw, even last year pa naman one can already buy a decent basic laptop here for around Php35k-50k. but i think it’s even cheaper in japan..
August 10th, 2007 at 5:57 pm
I am all for financial literacy. I also agree with you arpeelazaro, “the ultimate reward for the OFW is when they can work here and still have a comfortable life with their families.
“. If I earned the same amount of money back home and could live comfortably (not lavishly), I would choose to leave this place and go back home. If arpeelazaro’s testimonial echoes most of what the filipinos back home feel about the economy’s progress, then I think a few thousand pesos lost to the currency rate fluctuation is worth it. For us OFWs, its just a matter of being vigilant and being well informed about the financial goings on in order for us to be more equipped to make financial decisions whether to save in $, EUR, etc, or to invest in real estate or bonds.
On another note, can anyone enlighten me about the stability of the peso against the EUR and the $? It has been an acute trend nowadays for OFWs to save in EUR. I need opinions =)
July 25th, 2007 at 4:24 pm
@mikoy,
that makes electronic gadgets a lot cheaper there in singapore. a laptop would probabaly cost less than 50k pesos?
July 25th, 2007 at 1:18 pm
“get someone out of the clutches of a scam artist NOW,…”
- you really had to include that scamming cheapshot, huh?
one of the funniest invitations for another roundhouse of comments from the angry mob i ever saw. hehehe… :))
July 24th, 2007 at 10:09 am
kahit kami dito sa Singapore apektado din. last i looked it was down to Php29 per sgd. but like what i keep on saying to my friends here, it’s NOT that bad. isn’t it selfish if we’re complaining when what we earn is still way lot more than what most earn back home? tingin ko matatawa lang sumusweldo ng minimum satin sa mga reklamo natin.:)