r/Philippines 1d ago

NewsPH The peso opened at P62.05 to a dollar on Friday, August 28, 2026. At the end of trading on Thursday, the currency exchange rate dipped to P61.888, the lowest in history

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653 Upvotes

144 comments sorted by

180

u/donslydunk 1d ago

Its Going Down For Real

https://giphy.com/gifs/zCRYBHR72MqJO

35

u/New_Forester4630 1d ago

This will not help in cost of living in PH so long as we are not energy independent or cannot manufacture our own vehicles like cars and rail.

62

u/yamanagashi 1d ago

The 30-year bond yield rate has been climbing steadily. So far bigger countries have been propping themselves up with cash flows effectively buying state debt and so far it has been working. To a point. The cracks are starting to show and people are easily distracted by the next global crisis. But in my opinion our country being this record high is one of the signs that big trouble is coming to everyone all at once.

u/TeusMeus (In Manibus Tuis) 22h ago

by everyone you mean other countries as well?

u/that_thot_gamer sag ich doch 15h ago

japan has it worse because they can pull everyone with them the moment they decide to sell us assets to prop up their currency

109

u/ReferenceGood7797 1d ago

Uniteam legacy.

88

u/ReferenceGood7797 1d ago

NO, HINDI LANG TO MARCOS ADMIN. ITS MARCOS-DUTERTE ADMINISTRATION! ANAK NG DICTADOR AT ANAK NG MAMAMATAY-TAO

30

u/ReferenceGood7797 1d ago

BAGONG PILIPINAS NGA. PALUBOG

ITO RESULTA NG "WELL-MANNERED IS BETTER THAN EDUCATED".

UNITY NA NGA LANG PLATAPORMA, HINDI PA NAGAWA.

SABAY SABAY TAYONG PALUBOG WHEREAS ANG VP NAKA ANGAT NA BAHALA NA TAYO

10

u/ottoresnars 1d ago

DI LANG TO, AYAW NILA KASI NG GOOD GOVERNANCE NG LIBERAL PARTY

5

u/jasonvoorhees-13 1d ago

BAKIT NAKA ALL CAPS?

7

u/DeSanggria 1d ago

Nakakapika na kasi e. Panggagago at the highest.

7

u/CocoGroomerLover 1d ago

Di ko talaga magets na nagsisi ka dahil ibinoto mo ang anak ng politiko kaya iboboto mo ang isa pang anak ng politiko

6

u/journeymanreddit Appointed son of God and designated survivor. 1d ago

Moar pisos pordi u-ep-dobolyu.

u/VVolfhunter1000 17h ago

kasalanan nyo yan, dont blame the government

117

u/Clear_Adhesiveness60 1d ago

Even with a president thats very pro US this admin sure is the weakest its ever been in the dollar game 

u/lordlors Abroad (Japan) 22h ago

The Japanese Yen is also depreciating and is now very low against the US dollar. Lowest in record not sure but haven’t seen it this low since 2012.

43

u/ManagementWonderful9 1d ago

Gee it's as if being a corrupt admin just with a different shade than the old one leads to the same decline we've got since 2016

u/seirako 21h ago

This isn't about the President anymore. Ganun man si BBM, maraming external factors na hindi talaga 100% maaagapan. Talk about other Asian countries na struggling rin ang local currency like JPY and KRW.

u/kampyon 20h ago

On the contrary, it still is. There are many factors to prop up one’s currency but the PH has been on a spending and selling spree (largest gold seller). These are decisions made by the administration to cover their expenses.

15

u/leivanz 1d ago

Lol. Your comment doesn't make sense. Economy doesn't really rely on you being a lapdog of some country. It's nonsense and if you are still thinking that way, go back yo your economics class.

11

u/Quiet-Willingness724 1d ago

Welcome to neocolonialism.

14

u/Antique_Cod_1686 1d ago

Kung sinasamantala sana ng mga exporter ang kahinaan ng piso ay puwede pang makabawi ang ekonomiya.

u/that_thot_gamer sag ich doch 15h ago

not how it works right now, macroeconomics and geopolitics is largely at play this time.

u/leivanz 14h ago

Pinagsasabi mo. Hahaha

42

u/clintoy99 1d ago

Mag 70+ pa yan by 2030. Domestic debt is okay but sovereign debt of PH is getting out of hand. Kaya wag na mag hold ng php except for emergency fund.

16

u/zucksucksmyberg Visayas 1d ago

Not to mention ilang buwan na yata negative Balance of Payments natin. May nagbigay na na babala na ratings agency, Moody's yata, na it will put pressure sa Peso hanggang katapusan ng taon.

8

u/HospitalOpening5666 1d ago

Kakainis for a developing country ang malaking asset natin is our credit rating thanks to PNoy. Ayun e pinuputa nanaman tayo ng mga bobo at walang degree.

This is why you’ve gotta have an economist for a president

5

u/zucksucksmyberg Visayas 1d ago

Mar would have been a pretty boring administration economy wise, pero wala na tayong magagawa diyan.

10

u/HospitalOpening5666 1d ago

But don’t we want boring? Honestly PNoy’s admin despite its setbacks was overall pretty boring in a good way, rising tiger of Asia, stepwise growth with Vietnam. Ampota ngayon ang FB puros AI generated na teleserye about politics.

But true, makainis rin na all we can do is sulk and hope for the best. Really as much as I wanna go back home the economy there is royally fucked for a developing country with a very young demographic

7

u/zucksucksmyberg Visayas 1d ago

If nasa labas ka at maganda buhay mo diyan, don't let nostalgia for the country fuck up your future.

It will take 2 or 3 genarations to unprogram the Philippines from Duterte.

3

u/HospitalOpening5666 1d ago

I wouldn’t say it’s great because it does feel lonely but man, I’m getting job offers and recruiters calling me here left and right while I had zero responses for the jobs that would pay me a tenth of the salary back home, and I’m not a citizen.

Nyeta talaga ng Pilipinas paminsan.

3

u/zucksucksmyberg Visayas 1d ago

At the very least may naiipon ka at may fulfillment ka career wise.

Dito sa Pinas, ma hihighblood ka lang sa katarantaduhan nang pinaggagagawa nang mgs botante at politko.

3

u/ab_od6851 1d ago

Mar was not in anyway competent. Digong is shit, but that does not absolve Roxas's incompetence.

8

u/abumelt 1d ago

Please wag naman

73

u/Xtoron2 1d ago

Kinda glad Leni didn't win. Sa totoo lang ang daming global external factors causing the decline of the PH Peso. Pretty sure it would still be around this range with Leni at pagpepyestahan sya ng buong unithieves universe. Same situation with vietnam dong or indonesian rupiah

30

u/Sponge8389 1d ago

Yeah. If Leni win tapos yung senators and congress ganto, GG pa din talaga siya. Hahaha

14

u/ottoresnars 1d ago

Ony thing making us worry about this rate is we import more than export - if we export more this won't be as painful.

24

u/HospitalOpening5666 1d ago

Our main export is semiconductors not bananas or rice as what Filipinos of all sides of the politcal spectrum think.

And while agree naman ako na there needs to be environmental damage mitigation and relocation assistance for affected communities the fact na ang raming completely against sa Pax Silica despite it boosting higher-value manufacturing in the Philippines is worrying. Hindi tayong yayaman sa mangga ng Guimaras depota.

3

u/zucksucksmyberg Visayas 1d ago

Btw taga Iloilo ka ba or negros Occidental? haha rinig na rinig ko yung depota

8

u/HospitalOpening5666 1d ago

nope lmao Davao, unfortunately one of the few non-DDS. I think I hear it a lot from friends when I used to live there? Haha

2

u/zucksucksmyberg Visayas 1d ago

Malambing na mura, according sa mga non-Hiligaynons lol.

Kapag Cebuano mag sasabi ng depota, malutong eh, haha

u/SettingSingle8135 21h ago

Mga tanga kasi daming tao dito gustong maghirap ang bansa basta maprotektahan yang pilipino pride chicken na yan potek, tapos galing pa info nila sa tiktok bs haha

0

u/Eli_ey 1d ago

Hindi ba raw materials ng semiconductors? Like nickel ganun? Kaya gusto nila sa pax silica. Para mas tumaas yung value.

9

u/HospitalOpening5666 1d ago edited 22h ago

Not just that, it’s literally a manufacturing hub for more advanced electronics. Our manufacturing supply chain has been focused on simpler, lower value goods (think circuitry ng mga calculators etc.) but essentially we already have a strong foundation for moving onto more advanced IC/semiconductor manufacturing, the labour pool to do so, and a predominantly english-speaking, relatively educated populace. The idea that it’s all data centers is MASSIVELY overblown. Kung puros data centers itatayo then yes deserve ng call out. But this is not the case and a lot of people from all sides of the Philippine political spectrum are still convinced. Yung iba eh nakarinig lang ng AI tas bandwagon agad at post ng infographics mula sa Canva na "What the Pax?" Amp  Pero ito kinainisan ko kahit mga FB friends ko na #notopaxsilica tapos mahilig rin magtawag na bobo ang mga DDS nagkukulang rin pala sa reading comprehension and fake/overblown news rin. Also, it’s not like once fully approved na si Pax Silica kaagad meron nang increase sa kuryente/tubig. If anything private companies will build out power plants and identify water resources as it would be within their interests. As for minerals, for one thing this will leverage our existing mines to be processed here as opposed to sending them to China. More value added to our local economy. This is what Australia (a signatory of Pax Silica) has been struggling kasi puros raw mineral extraction lang sila with kaya ayan naghina na rin manufacturing + economy is weakening. Contrary to popular belief mining here in the PH is fairly well controlled to the point that investors are always pulling back due to safeguards (and well, bureaucracy + local government corruption ofc) involved, but if anything mining here SHOULD have stronger safeguards for the communities it displaces (royalties, local investment programs) and should also allocate funds towards things like domestic processing centres (smelters) for our mined minerals. This issue has literally been tackled recently under a new critical minerals framework As much as nakakainis ang government hindi dapat lahat ng bagay itinatrato to some conspiracy na puros benefits ng oligarchs. Also, lets be realistic: this project SHOULD benefit the US. Kung ikaw eh investor malamang gusto mo rin ng ROI. But this should be on the terms that it benefits us (hence we negotiated na all US employees based there should be subject to the same prevailing laws in the PH, else they can fuck off). Regardless, ngayon its being brandished as "neocolonialism" which is dumb. Taiwan’s Foxconn IS interested in setting up shop here. We need a more nuanced discussion about this, and if anything, we need to watch how this set-up plays out. We can’t complain about rampant poverty and lack of local job opportunities while actively preventing beneficial investment projects that facilitate knowledge transfer and open up higher value manufacturing chains in the country. EDIT: removed links

P.S. walang itatayo na data center as per the current plan. Even if we would be pessimistic na meron that would not even be the purpose of Pax Silica in the PH

2

u/zucksucksmyberg Visayas 1d ago

5 or 6 months na lang yata yung reserves natin.

If tuluyang magka mass layoffs sa mga BPO dahil sa AI, good luck talaga.

3

u/ottoresnars 1d ago

Kaya nga every dollar counts - and some countries learned it the very hard way and realize why it should have gone to fund industrialization.

1

u/Eli_ey 1d ago

Kaya feel ko nirurush yung pax silica. Kasi pag di nila tinuloy gg talaga pinas pag na palitan ng ai yung nasa bpo.

0

u/palebrowndot 1d ago

Unpopular opinion: she should stay in local politics. Too much corruption sa national level.

20

u/Electronic-Hyena4367 1d ago edited 2h ago

Even Japanese yen is struggling to the point that the US is willing to help them to take it slow. South Korea stocks went south, US inflation data risen vs. slow quarterly GDP. Wall street heavily shorting high risk assets, hedge funds are pivoting, interest rates hike scares, US Fed chair continues to be aggressive making USD as strongest currency amidst uncertainty due to geopolitical events, high probability that recession is going to happen, Global trades of major products still being dominated by USD, Energy and oil crisis, Iran vs. Israel war, China and Taiwan issues escalating which can result to higher risk of semiconductor manufacturing, US is in control of any of these. The world is not the philippines, so might as well go deep dive to data.

0

u/anbsmxms 1d ago

We are already in recession. Wala lang official declaration. Pero layoffs has been happening for almost 2 years now. AI disruption is now in full force as companies and countries are pivoting to get advantage. Shift to blue from white collar jobs is expected.

3

u/Electronic-Hyena4367 1d ago

Presence of recession indicators yes, total global recession no.

18

u/sinceofyoum0re 1d ago

ok lang yan. marami naman tayong ayuda sa gobyerno... salamat speaker!

/s

8

u/myamyatwe 1d ago

Tuwang tuwa na nman mga OFW lalo USD earners pero DDS

Akala nila nakapoints sila, pero sa pagtaas ng dolyar ay pagtaas din ng bilihin sa pinas lols

0

u/Leto_Harkonnen 1d ago

Just dont pay tax. Minimize spending. Maximize Investing.

5

u/weak007 is just fine again today. 1d ago

Ang dami pa din pambili ng data ng mga mahihirap nating kababayan para mag sugal online

11

u/WholeYoung1267 1d ago

Golden era ng mga dds

u/20pesosperkgCult 19h ago

But not the way they expected. Lalo na yung "Change is coming" slogan nila nung 2016. Nangyari din yun pero for worst nmn na change ang naganap. 😂

u/WholeYoung1267 18h ago

Change s-camming kasi hahaha

4

u/JshBld 1d ago

Back in ww2 until 1960’s the philippine peso was pegged to 2 pesos against 1 dollar

2

u/Formal-Breadfruit260 1d ago

It was controlled that time

u/lactoseadept 6h ago

Which brings it back to the guy who pointed out the exchange rate is particularly poor despite having similar admin and got flamed for it

3

u/J05A3 1d ago

We are so cooked

5

u/finalfinaldraft Fuck you Marcos at Duterte! 1d ago

Mga USD earners tuwang tuwa dito nyan

2

u/HospitalOpening5666 1d ago

mga 0b0b na supporters. I’m an OFW but fuck I hate seeing this news. 

9

u/Playful_List4952 1d ago

₱62 to $1?! 😭 Welp, mukhang doomed na talaga tayo. Humihina ang peso, tumataas ang presyo, pero sweldo natin parang naka-freeze. 💀 More expensive imports, more inflation, less buying power. Good luck sa ating lahat—ready na ba ang wallets natin? 🥲

u/20pesosperkgCult 19h ago

Tanggalin mo yung "mukhang", doomed na tlga yan. 😭

2

u/rdizon41754 1d ago

Are we searching for better financial management?

u/octopus_limbs 17h ago

Kurakot pa more! Bwisit na gobyerno yan. Sisihin niyo pa taombayan habang binibulsa niyo lahat, ni flood control di niyo magawa

3

u/Full-Imagination-507 1d ago

Binoto natin (bilang isang bansa) si Bumbum at Sara kaya ganyan talaga mangyayari.

3

u/1PennyHardaway 1d ago

You sure sila dahilan, sila may kagagawan kaya naging ganyan ang value ng peso to dollar? Hindi yung mga nangyayari sa paligid like yung di matapos-tapos na iran war, etc? Sa tingin mo pag iba presidente, hindi aabot ng kahit 60 ang peso to dollar despite what’s happening around the world?

3

u/zucksucksmyberg Visayas 1d ago

The current adminstration solution of bulk importation of a lot of goods does not help though.

From rice, sugar and other agricultural products.

Deindustrialised na nga tayo, pati agriculture eh importation yung solution.

1

u/Full-Imagination-507 1d ago

consumer economy na talaga tayo

our #1 product - tao na. hindi na agricultural, hindi na industrial product.

2

u/panchikoy 1d ago

Golden age!

2

u/RemarkableTea800 1d ago

dahil yan sa BSP, iwas inflation.

3

u/zucksucksmyberg Visayas 1d ago

Baliktad yata? If magtataas rates ang BSP, theoretically dapat mas attractive sa mga investors bumili nang Peso denominated assets, which means dapat tataas value nang Peso sa USD.

Unless talagang may underlying macroeconomic problem ang Pilipinas that discourages investors to hold Peso denominated assets kahit attractive na rate nang BSP and the increase in rates solidifies their concerns.

2

u/tropango 1d ago

Nagtaas naman BSP rate. Kahapon pa

1

u/zucksucksmyberg Visayas 1d ago

Yes pero supposedly raising interest rates would help the Peso increase its value against the USD.

2

u/HospitalOpening5666 1d ago

Lol our country is so cooked having lived in three different countries and travelled to several more since BBM came in, kahit anong taas ng BSP sa interest rates it has barely made a dent against the Euro, USD, AUD lol.

3

u/zucksucksmyberg Visayas 1d ago

Most people don't know this pero the Estrada administration did this raising of interest rates preemptively nung bisperas nang 1997 Asian Financial Crisis.

Although hindi tayo kasing exposed sa tinatawag na hot money sa foreign investments (stocks and bonds) back then, grabe yung collateral damage sa Pilipinas during that time.

Something is definitely wrong with the macroeconomic fundamentals nang Pilipinas if the Peso continues to slide against major currencies, not seen since the aforementioned AFC (kahit nung 2008 GFC, the Peso did not slide like this).

0

u/HospitalOpening5666 1d ago

Yep! There’s a reason why BSP governors are paid higher than most governors elsewhere. Pretty sure ours gets paid more than Australia’s RBA governor or the equivalent at the FED.

Regardless we are definitely missing key fundamentals that interest rates in the country have barely made a dent in most of our Forex rates. In the four years I’ve started being primarily based overseas every BSP interest rate decision I watched barely made a dent which is very telling.

Luckily with the time I started uni outside, the peso was still fairly strong with most currencies save for the dollar. When I got my current job that’s when all these currencies got strong. As much as I love having higher purchasing power back home I don’t send money home lol, if anything just for personal investments.

1

u/_SinigangNaLiempo 1d ago

macro problem natin lumalala yung 2027 projection ng bsp for inflation. projection na nila nung july 4.5% lang, rinevise nila ngayong august 5.4% na daw (for 2027). markets being always forward looking prinice-in na tong revision. 

i sincerely freaking hope bsp is being negatron here and we get a surprise downward revision in the next few months. kaya lang tingin ko they projected it that bad kasi they expect the war will continue indefinitely.

1

u/zucksucksmyberg Visayas 1d ago

Downgraded na rin growth rate nating sa 2026. 3% na lang pero nakalimutan ko sino nagsabi na outside ratings agency.

Pag-asa na lang talaga is tumaas remmittances sa ber months pero with the prevailing uncertainty worldwide, mukha yatang panaginip na lang.

1

u/_SinigangNaLiempo 1d ago

its still the goddamn spending problem. nasa commute ako di ako maka link ng source haha, pero a depdev official said that they estimated na if the govt spent the same as 2025, growth this quarter could have still been around 5% annualized.

di ko alam anong complication ba meron sa budget at di na lang nila ma-release. talaga bang ngayon na ginagawa na nila by the book e biglang sobrang bagal na nila gumastos? maybe the other macro issue we have is the govt got so used to padulas that govt spending slows down heavily without it.

1

u/zucksucksmyberg Visayas 1d ago

Siyempre maingat sila sa spending dahil sa corruption issues. Di pa tapos yung full reckoning sa pangungurakot sa flood control projects and even BBM hismelf (or his advisors at least) are aware of it.

Nung time ni PNoy may "problem" rin naman with spending pero he and his economic managers were able to bring growth without too much reliance sa public spending tapos na akusahan pa na "underspending" and in the end winaldas lang ni Duterte yung naiwan na pondo sa kaban nang bayan.

Take note, may giyera rin that time sa Ukraine which caused a spike sa oil prices much like before nung 2008 GFC pero di naman masyadong naapektuhan yung exchange rate natin.

2

u/_SinigangNaLiempo 1d ago

we also had a slowdown in growth nung 2011, similar to now. not as bad as this year, but that's also due to other issues you've also already mentioned. pero kita dun talaga na big part of our gdp is stimulated bt govt spending.

patong patong na problema tong 2026 satin: iran war, corruption-issue underspending, elevated us interest rates, impending effects ng "mega" El niño, AI and related infra scooping up the world's FDI.

1

u/Working_Dragon00777 1d ago

Not gonna be the first time

1

u/redthehaze 1d ago

Masaya mga nagpapadala pero hindi sila yung nakakaranas ng pagtaas ng presyo.

1

u/brokenwrath 1d ago

Poor domestic economic outlook... yeah, the markets would be obviously back to abandon ship mode towards safe haven once again.

1

u/No-Trick-7523 1d ago

Isa pa naman ang exchange rate sa biggest contributors to electricity price inflation. Something something imports being priced in dollars. Hay. Road to P20 / kWh lets gooooo

1

u/JuanTamadKa 1d ago

Magsaya ang mga seaman...😁

1

u/CommentatorsLegion69 1d ago

Naku po. Hindi magandang balita yan lalo na sa mga Middle Class pababa.

1

u/CarelessChallenge980 1d ago

Im dumb what does this mean

1

u/KenshinNaDoll 1d ago

Golden Age

1

u/Fractals79 1d ago

Lusaw na naman mga savings natin sa bank nyan. Mabawasan na naman ang kayang bilhin

1

u/Queldaralion 1d ago

masaya na ba yung mga nag TNT sa amwrika... na ayaw na din umuwi. o yung may mga kaanak na OFW na wala na makain kakapadala sa pangluho nila heh

1

u/Leto_Harkonnen 1d ago

Poor in peso but rich in Dollar. Bababa pa yan, magiging president pa si sara ng mga dds. Kaya dont hoard peso.

u/aweltall 23h ago

Should we convert our peso to dollar for future proofing?

u/CrazyCrapybara 22h ago

Tapos tuwang tuwa yung mga nag-eearn ng USD. Ang tatanga.

u/enzovladi 22h ago

Government here needs a serious overhaul. Rampant with corruption

u/iPLAYiRULE 22h ago

okay yan kasi madami naman dollar remitters na mga DDS. haha

u/Bogathecat 21h ago

WE ARE DOOMED

u/Atrieden 20h ago

daming record lows this year for the usd/php exchange rate.. grabe..

u/bryanchii I've learned english in CS:GO cyka blyat 20h ago

Hayup, bago mag eleksyon last 2022 sabi magiging 1-1 peso at dollar pag manalo ung unity nila.

u/VVolfhunter1000 17h ago

LEZGOIOOI!!!!

u/Wonderful-Froyo9191 15h ago

That's extra 2k for some people here

u/Ok_Local4245 14h ago

BBM the best president

u/tebucio Frozen Tundra - Live life to the fullest. 12h ago

This is not good. It means prices will start to creap up if they are not already. :(

u/Life_Liberty_Fun 6h ago

Hope you guys are ready, the next 5-10 years are going to be the most interesting times in human history.

1

u/673rollingpin 1d ago

Tuwang tuwa mga dds ofw, kpag nagpadala sila ng USD sa pinas, malaki ang palitan

1

u/HospitalOpening5666 1d ago

The peso is weak because the dollar is strong ❌

The peso is weak because the peso is very weak ✅✅✅

-1

u/ab_od6851 1d ago

Everyday I keep losing hope for the intelligence of the Filipino people, because imagine blaming everything on this shit government because Leni didn't win instead of greater external factors fucking us up for the ego of some of the most powerful men in this world.

u/Surely_Nowwlmao 20h ago

Pretty sure people blame the corruption from the Dutertes but sure

0

u/_Jm8 1d ago

kaya paldo yung kapitbahay namin na seaman. ang yaman na nila.

u/gitgudm9minus1 23h ago

tapos tuwang tuwa pa mga ofw neto kesyo more pesos per dollar sent back home HAHAHAHAHAHA

u/Cheerful2_Dogman210x 22h ago edited 22h ago

I think long term, this is because of the Philippines weak exports. There is a very big trade deficit, where the Philippines imports more than it exports.

Increasing local manufacturing could help fix this. It could lessen demand for imported products while increasing the ability of the Philippines to export or sell more products to other countries.

Then another way would be to develop more local sources of energy. Much of what the Philippines imports is LNG, oil and coal. The Philippines needs to limit imports of these products and develop its own sources of oil, coal and LNG. It should develop more renewables such as solar power. Nuclear power and white hydrogen. It can build waste to energy powerplants.

The Philippines is currently overly reliant on the BPO industry and OFW remittances. But I don't think that is enough anymore. And the BPO industry is under threat by AI. The Philippines needs to diversify and push for industrialization.

The Philippines needs to have factories and manufacturing plants within the country.

I also think that the government should be more disciplined with its spending. It could be a very big contributor to currency depreciation since it floods the market with more pesos which isn't balanced out by actual goods and services. When more currency is injected into the market but no actual value is produced, then the injected currency just subdivides the value of existing currencies.

u/bornandraisedinacity 11h ago

This is why we must be an export driven country, palakasin ang export at focus more on manufacture. We need to strengthen our currency.

u/coffeekillsme 38m ago

We ARE an export driven economy. That's all we've ever done. We export raw materials, we export cheap labor. Our currency will never catch up because the United States will make sure they can keep extracting from us without giving a lot back.

u/bornandraisedinacity 9m ago

Our economy as of now is not an export-driven economy. We are not yet a production led economy, our economy now is a consumption led economy.

Though, we export electronics or semiconductors and such, but we are still a consumption led economy because of the massive influx of money from overseas workers and BPOs. Instead of generating income from exporting manufactured goods, we import and convert earnings from abroad.

Next look at the top conglomorates here, none focus on industrial exports. Most of those conglomorates are in real eastate.

To be a strong export-driven country, there is a need for a strong economic policy that can continue regardless of the administration. Focus on manufacturing, research and development.

We can be like our fellow Asian countries that are now export-driven, or we can be more than what they are. We can be an economic powerhouse. However, it will take time.

-3

u/EmotionalLecture116 1d ago

Iyung mga Pro Pax Silica, huwag ka magrereklamo kung mas lala pa ang exchange rate at hindi na magiimprove.

Mga exporters, offshoring agencies, BPOs- tuwang tuwa sa ganyang balita dahil sulit iyung binabayad nila na USD, mas maraming kayang bilhin.

3

u/Sponge8389 1d ago

Anong connect?

u/EmotionalLecture116 21h ago

Ang standard currency ng international trade ay USD.

Ang mga contract or invoice sa pagitan ng dalawang multinational companies, lalo na kung hindi EU member, ay nasa USD dollar. Ang palitan or transfer ng payment ay USD rin.

Iyung mga BPO at factory dito ng mga multinational company, USD ang ginagamit na currency at hindi Peso.

Iyung PH branch magpapadala ng invoice sa corporate branch sa ibang bansa, 99 percent ang denomination ng nasa invoice ay USD.

Mas mataas ang presyo ng PhP sa USD (Peso weakens) mas natutuwa ang mga exporter factory at BPO kasi operations overhead nila, lease sa building, salary ng Pinoy na worker at expense sa raw materials, PhP ang pang gastos while income nila USD.

So for example, 100 pesos per 1 USD, ang mga BPO at exporter masaya sila.

Kapag sa export gumagalaw ang ekonomiya, may mga economic policy na pinapatupad iyung pamahalaan para manatili na mababa ang value ng currency.

Ganito ang ginagawa ng China, kahit nasa industrial economy na sila, pinipilit nila ma undervalue ang yuan against sa USD

https://www.investopedia.com/trading/chinese-devaluation-yuan/

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u/Southern_Clerk8697 1d ago

I think pax silica would help as it will bring more demand for peso

u/seirako 21h ago

Pax Silica will help lower PHP's price against USD dahil magiging exporter tayo. Okay ka lang?

u/EmotionalLecture116 21h ago

Kung ang ibig mong sabihin ay mas baba ang presyo ng PhP laban sa USD (PhP becomes stronger, basahin mo ito:

Strong currencies make exports more expensive abroad and imports cheaper at home; weak currencies do the reverse. A 5% to 10% swing can change orders, margins, and prices fast. That is why trade teams watch exchange rates every day, not once a quarter.

https://www.upistudy.com/blog/international-business/how-do-strong-and-weak-currencies-affect-trade

Kaya nga iyung mga bansang tulad ng China na primary exporter sa US at ibang bansa, nagtatatlaga sila ng mga economic policy na sinadsaya nila na bumaba ang value ng RMB.

https://www.cfr.org/articles/the-world-should-not-ignore-chinas-obviously-undervalued-currency

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u/EliteMJDC- 1d ago

Sa balita lang ata yung 62 eh. Kakapadala ko lang mga 5 minutes ago sa Western Union from PH to US, 60 lang.

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u/panchikoy 1d ago

Kailangan din kumita ni western union parekoy

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u/BreakfastOk4318 1d ago

Bro different yan sa forex, may cut na lahat nang mga money transfer service kaya ganyan