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!
So much has been said about OFW being a hero and doing sacrifice for out country but as we see it the government is not doing anything to protect the our interest.Now that the value of our hard earned salary is sliding steadily as the peso is appreciating daily it is only fair that we the most affected OFW will have to do our part to protect our own interest as nobody will do it for us (specially) the government of Mrs. Macapagal Arroyo.
I'ts always boasted in the papers that the remittances of the OFW is growing every month and appreciation of the peso is partly due to the increase of remmitances from us. As more dollars are coming in ,the peso devalue. I would therefore ask my fellow OFW for us to help each other and protect our hard earned money by doing our part.First don't send home all your salary earned abroad.Only send what is enough for the expenses of your dependent in the Phil.Save the rest of your earnings in US dollars or Euro and invest it in other stock market abroad.Or for a more radical way to portect our earnings here,don't send a single dollar to the Phil. for at least three(3) months , I'm sure that if all OFW will stop remitting dollars To the Phil. for 3 monhts the peso will appreciate and we will gain back what ever we lost in lower peso exchange rate. i.e. in our part we are now lossing 15T pesos every month from our earnings.we earn 3K US dollars per mo. with the exchange rate of 50 pesos per US dollar last year compared to 45 pesos per US dollar now. THINK ABOUT IT fellow OFW .Let's help ourselves first 'cause nobody will.
Hats off to you Salve in your crusade with respect to increasing finacial literacy among Filipinos.
We need more people (writers) like you in this country still riveted with political and showbiz frivolities.
As a young lawyer, I've come to realize that there is indeed a direct and causal relation between the level of financial literacy of a person and and his financial/material success.
Keep up the good work Salve:)
Thank you Salve for stressing the point that I have been writing in response to OFWs. It is the dollar that is weakening, and as an effect the peso is appreciating, together with other currencies. The government can justify to intervene (which happens only during "emergencies") if the peso is the only one appreciating.
@michael garcia,
It is a good point, but you must act in unison. salve has mentioned speculators that can unload their dollars once they get a chance to have a good exchange rate. and as a result the peso would be probably up again. Remember also that foreign investors are getting their hands at IPOs (another dollar inflow) and at our stock market. Heed salve's advice on where else you can put your investments in dollar.
Is this a section where reactions to SONA can be posted?
The presentation on the status of super regions is good, but I think for her to really put a legacy at least 60% of the projects finished then everybody will be happy. I never thought that she was all over the country opening roads and bridges, maybe the news should also cover these things so that the people would know that she is really working her arse off.
from the start i have always believed that gma can turn the economy around. i am not an OFW and only earn in pesos. for me, the appreciation of the peso makes me feel that my hard earned money will go a longer distance since i only make around 15k a month, about a fraction of what OFWs make . i have stopped being too critical of the president because i realized complaining never solved anything. i am enjoying the benefits of gma's efforts as i am currently working with a foreign company who's back office processes are done here. bottomline, my life has become better with gma at the helm. most of what she has promised in her sonas have seen fruition. why can't we just stop complaining and contribute to nation-building by working and paying out taxes? remember that our sorry lot cannot be improved overnight, as promised by other politicians. things started to get better since ramos' time. let's just do what we always do and good things will come our way. stopping remittances will only hurt the economy. OFWs are heroes because their remittances help fund the economy. the ultimate reward for the OFW is when they can work here and still have a comfortable life with their families.
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.:)
"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... :))
@mikoy,
that makes electronic gadgets a lot cheaper there in singapore. a laptop would probabaly cost less than 50k pesos?
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 =)
@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.. :D
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Post author is clever.!