Exchange rate implications of strengthening peso

[Scuba_Jenny]

MOD NOTE: Thread split from another thread.

 

[Spoon]

MOD NOTE: Thread split from another thread.

as requested by paolov, this thread has been split. thanks jenny for the quick reply and speedy action.

 

[Twomixdiver]

as requested by paolov, this thread has been split. thanks jenny for the quick reply and speedy action.

... a hijack, my desire to contribute to this particular subject has definitely waned...:11doh:

 

[Web Monkey]

im no economist but what does that mean to the average chinese guy?

Probably nothing. Chinese factory workers work their *** off, but I don't think the foreign exchange rate has much of an effect on that (except to keep them employed).

Eventually it throws the Balance of Trade between countries out of whack, but there's also argument whether that's significant.

Terry

 

[jigo]

guys, i know this is a bit of a different slant to the topic but i wonder if anyone knows how the peso's strength will affect rates for liveaboards that charges in dollars? kind of a double whammy for them since the peso value of their rates is going down while fuel prices are going up. i fear they may decide to charge more just when i am planning my budget and hoping to be able to afford tubbataha

 

[Spoon]

guys, i know this is a bit of a different slant to the topic but i wonder if anyone knows how the peso's strength will affect rates for liveaboards that charges in dollars? kind of a double whammy for them since the peso value of their rates is going down while fuel prices are going up. i fear they may decide to charge more just when i am planning my budget and hoping to be able to afford tubbataha

from what i hear the prices in dollars will remain the same. so if the peso stregthens some more against the dollar, it will be slightly cheaper for the locals and the same for foreigners.

 

[pakman]

from what i hear the prices in dollars will remain the same. so if the peso stregthens some more against the dollar, it will be slightly cheaper for the locals and the same for foreigners.

what about the newly imposed VAT? that's gotta force those liveaboards to pass on the increase to their customers?

 

[Spoon]

what about the newly imposed VAT? that's gotta force those liveaboards to pass on the increase to their customers?

i dont think vat applies only for consumer goods. i could be wrong though coz if they did then the additional 12% vat would be an additional burden for the locals

 

[Babydamulag]

P51.605 = $1.00
Let the peso get stronger!! The tax applies to consumer goods. The burden of debt relief is placed on the citizens. Read today's headlines on INQ7- http://www.inq7.net/globalnation/sec_new/2006/feb/06-01.htm. We need to make sure the coffers are filled with tax revenue and spent on the citizens. The Philippines is getting there. Remember, your VOTE counts!!

 

[Armand]

Lets be cautious though on the rise of the peso vs the dollar. I don't think its because of a strengthening Philippine economy but because of a weakening dollar as reflected on the gains of the other currencies in the region also. I think that as soon as the US economy starts to climb again and we don't keep up, we will see again the weakening of the peso.

No cause for celebration....coming from an OFW. The Philippine Peso as well as other currencies in the region are appreciating against the dollar. I regularly remit a fixed (local currency) amount to my folks back there. The total amount they receive already in peso has fluctuated +/-2 pesos only for the past 24 months. Yet the prices of basic goods have sky rocketed during the same period.

Any politician who says/claims that our economy is taking off as seen by the dollar exchange rate is a big liar! They can tell that to the marines!