Peso breaks into 40-to-$1 territory

Appreciation seen to continue


The peso on Tuesday, Nov. 27, 2012, rose further to break into the 40-to-a-dollar territory on the back of robust remittances and increased appetite among investors for peso-denominated securities. AFP PHOTO

The peso on Tuesday rose further to break into the 40-to-a-dollar territory on the back of robust remittances and increased appetite among investors for peso-denominated securities.

The local currency closed at a new 56-month high of 40.87 against the greenback, gaining 13 centavos from the previous day’s finish of 41:$1. The intraday high hit 40.85:$1 while the intraday low was 41:$1. Volume of trade amounted to $899.52 million, up from $655.09 million on Monday.

The peso’s movement on Tuesday brought the local currency’s appreciation since the start of the year to about 7 percent, making it one of the strongest currencies in the region.

Despite Tuesday’s gain, the Bangko Sentral ng Pilipinas has maintained that the peso remained competitive. The BSP said that although the appreciation since January was significant, the intraday fluctuations of the peso were still less than those of other currencies in the region.

“The peso has indeed appreciated faster than regional currencies have, but the volatility of the peso has been maintained at the middle of the range (of volatilities of key currencies in the region),” BSP Governor Amando Tetangco Jr. told reporters.

According to the BSP, having moderate day-to-day fluctuations of the peso-dollar rate helped temper disruptions caused by the year-to-date appreciation of the local currency to operations of businesses.

The rate of volatility, which indicated how wide or narrow the exchange rate moved around the average for a given period, stood at 1.79 percent for the peso so far this year, Tetangco said. This was more tempered compared with 2.14 percent for the Japanese yen, 2.29 percent for the Australian dollar, 2.33 percent for the Indonesia rupiah and 4.38 percent for the Indian rupee.

The peso’s volatility, however, was faster than the 1.72 percent for the Malaysian ringgit and 1.33 percent for the Thai baht.

Tetangco noted, though, that the BSP would strictly monitor the foreign exchange market to see if there was a pressing need for a more substantial intervention.

“We remain watchful of market conduct,” Tetangco said.

Foreign exchange traders said the BSP had been intervening in the market, arguing that were it not for the dollar-buying of monetary authorities, the peso could have been much stronger that its current level.

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  • Peter

    It’s true that OFW’s help a lot in our economy but Filipinos should change that kind of mindset. Hindi pwedeng aasa na lang lagi ang pinoy sa padala ng kamaganak at mga dollars na pumapasok sa bansa. Panahon na para tumayo ang bansa sa isang maayos na pamamahala at hindi umaasa sa OFW remittances.The Government made drastic changes in economic policy and in fighting red tape and corruption which boost confidence from foreign investors. That’s the one main reason why our economy now is picking up. What was happening now actually happened already during Ramos Administration wherein Bussiness confidence was very high during that time and it’s not only because of OFW, I knew because im an OFW. Decades ago, South Korea also sent their locals abroad to work but when their economy grows they started to go back home. We hope someday, Filipinos will not go abroad to work as engineer, saleslady,nurse,driver,maids,prosti etc. but to be a tourist or an investor. We Filipinos need to change that mindset. GOD BLESS THE PHILIPPINES!!!

    • mr dt


    • Wearth

      pano tayo mag pupursiging mag trabaho sa pinas kung ang bilihin ay sobrang taas at ang sweldo mo ay nasa P6k to P10k kada buwan o sobrang kakarampot lang? kaya madami pa din pilipino na nagtratrabaho sa ibang bansa kasi ang baba ng pasweldo dito at sobrang mahal ng bilihin.

      sa S.korea at least ang gobyerno nila hindi kurapt at tama ang presyo ng bilihin at ang sweldo nila tama lang para di ka maghirap.

      Sana lang magbawas ng presyo sa bilihin at itaas ang sweldo ng pilipino, at magbuhos ng madaming trabaho para sa mamayang pilipino.

  • carol

    It does not mean that the economy is good, there so many OFWs who are remitting. Even when GMA left her tenure as president, we have a lot of dollar reserves, in which BS Aquino loaned it to an international agency instead of helping boosts the economy in our own country.

  • Albert Einstien

    Philippine economy can’t do without OFW remittances – Neda

    OFW remittance BOOST peso to four year high….

    hot money or foreign portfolio investments plunged to $40 million in October from $402 million posted in September.
    Boosted by remittances from overseas Remittances reached $17.3 billion as of end-September, up 5.7 percent year-on-year, according to the Central Bank. In September alone, remittances totaled $2 billion…

    we can change the situation( zero ofw ) in the future by tapping our mineral & natural resources we have VAST reserves of it…but first we NEED to protect the territory & resources ….by having a huge army & population..& having VISIONARY patriotic filipino blood leaders…..if NOT we are VULNERABLE to INVASION not only by foreign governments but by ECONOMIC VULTURES …multi-national corporations &corrupt KKKs…

    AS OF today huge POPULATION is the backbone of our ECONOMY not the government…

    “The inflow of remittances is about 30% the earnings of our exports sector, in nominal terms. In fact, it is even higher than the foreign direct investments that we are getting. Because of remittances, our country’s international reserves have been at comfortable levels, and this implies less vulnerability of the country to external shocks, lesser reliance on foreign savings, and availability of more currency that will help our country service its debts and pay its imports,”nedathe remittances are a significant source of human capital development.“
    At the household level, remittances are used to finance human capital investments. A portion goes to the education of family members. Returning Filipinos from abroad also bring into our country a new breed of entrepreneurs. They are a source of technology transfers as well,

    ” the Bangko Sentral ng Pilipinas has financial literacy programs for OFWs and their families, so that their money is placed in the right investments. ( neda )

    OFWs are contributing $20 BILLION in our fc reserves in 2012 …that is why we have $82 billion fc reserves ….not because of FDI’s ( its falling…hot money or foreign portfolio investments plunged to $40 million in October from $402 million posted in September. ) or government initiative…( spending )…

    BPO SECTOR: The IT-BPO industry is targeting $12 billion in revenue this year, higher than the $11 billion generated in 2011. The contact center component accounted for 65 percent of total business in 2011 with 416,000 employees providing $7.4 billion in services to the world.

    If you will see our people or huge population is the one SAVING our COUNTRY from economic collapse….due to govt noynoying & incompetence….

    Without huge population we are DOOMED now & in the Future….!

    GUSTO pa agawan ng CREDIT ang mga nagpapakahirap na OFWs at BPO’s…….noynoying at it’s best..kunyari nagkakasakit magtrabaho…grabe….puro propaganda at spins kasi ….NATO..naman…

    • RONNIE858

      Nasa talampakan talaga, dapat nasa ulo…

  • Jezzrel

    Mga iba rito, selfish… kung OFW man kayo, gusto niyo bang habambuhay na lang kayong manga ngamuhan sa ibang bansa? Di niyo ba hinangad na bumalik at magretire or magnegosyo dito sa ating bansa. Gusto niyo bang habam buhay na lang kayong iexploit ng mga amo niyo? Karamihan diyang OFW, exploited sa kani kanilang trabaho.

    Ang kailangan lang natin ay ang maipressure ang mga nakaupo sa mga kumokontrol ng presyo ng bilihin dito sa ating bansa, (DTI ba iyon, di ko sigurado) mga lider natin na puro sariling interest lang ang prino protektahan.

    Oo, nandon na tayo na kahit umangat ang value ng peso natin against other foreign currencies, di naman nababa ang mga presyo ng mga bilihin.

    Mga ganid ang mga nag nenegosyo sa atin at alam natin iyan, ang kaso walang pakialam ang mga nakaupo sa gobyerno natin kasi sila mismo ay me kanya kanyang me negosyo, me mga shares sila sa Shell.

    Laging dahilan, mataas gasolina, mataas ang production cost pero madalas puro imported naman ( pag tumaas ang value ng peso, dapat bababa rin ang custom duties at importation taxes kaso hindi yata nangyayari sa atin eh).

    Di lang sa Shell, sa Meralco ( dating public Utility Corp, an american company noon araw), sa Media at iba pang malalaking negosyo sa atin.

    Pero pinaka numero unong dahilan ng mga negosyante eh mataas ang GASOLINA……………….

    • carol

      I am retired with good monthly pension, the problems in the Philippines are CRIMES !!!. .I love going back but who would want to go back home if a citizen is not safe. I was there and I lived in fear because of killings, robberies carnappings everywhere, so rampant. Hope the government gives time to solve these problems. 

      • Lits

        Implement death penalty on public places infront of the people. Thus, criminals will think 100 times before doing it, for sure criminalities will shrink. There must be no bail for holdup, carnapping, akyat bahay, robbery for 10 years. Philippine economy are fully occupied by Ganid na mga chineses mostly locals have no other means of livelihood like retail sari sari stores…for instance Puregold taking their livelihood and SM with palengke inside (fish and meats). Very terrible chinese invaded business like airlines, banks, communications, jollibee, other fast foods grocery, shipping. Bring back these chinese to their homeland -> CHINA. So Filipino People will have opportunities.

      • mr dt


      • mr dt


      • Jezzrel

        Carol, sa tingin mo pag magkaroon tayo ng isa pangulong hindi pansariling interest lang ang pino protektahan, sa tingin mo di niya maiisayos ang ang peace & order dito sa ating bansa? As a Filipino citizen, we should do our part too.. I agree that the CRIME are very high & rampant here in our country..

        Alam mo kung bakit? Wala tayong disiplina, don’t make poverty as an excuse kung bakit maraming krimen dito sa ating bansa.. Wala tayong disiplina, me batas tayo, napakarami pero di natin sinusunod at iyan ang totoo. Di tayo natatakot .. siguro ibalik na lang ang death penalty para sa mga heinous crimes, tingnan natin kung di mabawasan ang krimen dito…

        pero iisa lang talaga ang suma total niyan eh, wala tayong disiplina…..

  • dprotector

    I think it is about time for the central bank to lower the interest rate so the value of peso could go down which will help both the businessmen and  the OFWs. The interest rate now is 3.5% which I think they can lower it to 2.75% the same as Thailand which is Philippines main investment competitor.

    • Valdez Warren

      Lowering of interest rates may had attracted businessman to borrow money for business expansion or for new investment which later creates more jobs but, inflationary effect to goods and services can also be seen as an effect resulting to relatively high prices of goods specially on locally made products. Appreciation of peso is expected if without the intervention of our central bank. Meaning our central bank needs to release millions of our dollar reserve into the market to keep our peso afloat and remain competitive in export / import industry. It is a big mistake to base our decision in rising / lowering interest rate in ours with other country due to difference in market condition.

  • carlcid

    Unfortunately for the Philippines’ unsung heroes, the overseas workers, they have become a victim of their own success. Because they have remitted so much to their home country, and practically propped up its economy for decades, they are now being penalized by giving them a lower exchange rate for their hard-earned foreign currency.

  • raulloreto

    eh bakit tumataas ang gasolina, noon, kung tumaas ang dollar at bumaba ang peso taas agad gasolia, ngayon nag-appreciate ang peso tumaas pa rin ang gasolina

    • Jezzrel

      Kung me rollback man sa presyo ng langis, sa transportation me rollback sa mga pamasahe, pero sa mga bilihin wala, kasi ikakatwiran, mataas noong araw ang nagastos namin sa pag import or production sa mga paninda.. 

      Buti pa talaga noong panahon ng dating Pang. Marcos, kahit sabihin pa nating  pabulosok na ekonomiya natin starting from earlier/mid 80’s eh mas ok kumpara ngayon.. nagsimula lang paangat dring later years ng GMA administration.

      So ang sagot( totally d naman kung mga batas natin di naipapatupad at nasusunod), pag pursigehan ang exploration and production ng OIL dito sa atin pra di na tayo import ng import ng langis………… 

  • Ben

    The country needs to to think on how to reinforce the internal economy of the nation and should not be too dependent on remittances as well as the stock market`s speculative based hot money.
    Remove these two factors, we should then be able to see how the country will function. Do we have adeaquate infrastructure, urban planning to support an expanding economic activities such as the road system? Is the country`s road system able to reduce the traffic time so that goods and services will not be sspending much in the road, losing money every minute of getting caught in the traffic cost so much for businesses. Have we already improved and set up new airport systems outside of Manila to support increased travellers going in the country? The growth of tourism must be matched by a world class networks of wide road systems and hotel accomodations.

     Developing Clark for example would mean a multiplying effect in the economy of Central Luzon and the whole country in general, served by a high speed train will increase our economy further…spreading out the investment risk and concentration of economic activity out of M. Manila should be the goal of this country to spread the wealth to other provinces. Have we improved and expanded the mass transport of goods and services via rail system? A network found mostly in more industrialized nations hauling millions of people without adding too much vehicles in the road and is reliable against the inconvenience of floods, and traffic gridlock. Have we finally erected flood infrastructures surrounding major cities and other population centers, and agricultural lands…source of our food.. to defend against climate change? This should help minimize yearly losses from typhoons and or drought that is costing this country billions of pesos of damage and reconstruction effort, that is a major break for the economy, the reconstruction effort could have been used for other worthwhile programs.

     Have we finally improved and made cheaper our energy supply for commercial, industrial and residential use? A high electric bill is also a major investor`s headache, who wants  do business in an area whose electricity is eating up your profits? This is a major no no for our goal of high tech  industrialization, manufacturers needs to enjoy cheap elelctricty, the lower cost of production means cheaper products for people to consume. How about exports? Strong peso, reduces our export receipts, buying power of OFWs’, and in the end less earnings for the government to fund its various projects such as the AFP modernization, but on the other hand F-16/F-18 will become cheaper if our peso is strong. The country should find ways to invest this overflowing of hot money not only parked in the central bank`s vault sent by financial investors to speculate on our stock market`s performance and earn interest but, to get it to be productive it has to circulate in the country to support cheaper funding for business growth, infrastructures, and cheaper consumer`s credit…Remember we want to aim for at least an 8% GNP to help uplift a sizable poverty in our country, with this kind of 8% continues growth, the country will expect more funds for the AFP modernization and budget for infrastructures and social upliftment without resporting to more foreign borrowing by the government and is also an additional proof of our resiliency against China`s threat of economic punishment on us….

    • raffyb0i


  • Wearth

    pano na mga OFW at mga freelancer na sumusweldo ng $$, sana naman magbawas ng P5-10 sa  lahat ng bilihin para makinabang ang taong bayan at hindi lang puro negosyante ang nakikinabang sa pagtaas ng Piso

    • marshmallow23

      wag na kaseng umasa sa mga OFWs dapat ibalik na ang trabaho dito sa pilipinas

    • Jezzrel

      Selfish!!!! Ayaw mong umasenso/ umangat naman ang ekonomiya natin, kung mas mababa na ang palitan, let say exchange rate ng 1 USD is 2 PHP or maging USD41.00/1.00 PHP, gusto mo pa ring manatili sa abroad? 

      Siguro, sasabihin mo sa akin, ‘in your dreams’, pero di ako nawawalan ng pagasa, darating din ang araw na makakabangon ang Pilipinas… malapit na iyon, nagsisimula na noong panahon ni GMA at patuloy ngayong panahon ng AMO mo, pero sa darating pang pangulo after 4  more years, don mo mararamdaman ang konting ginhawa sa pamumuhay nating mga Filipino….

      O huwag ka nang kumontra, mag AMEN ka na lang……………

  • jinx

    Haha, Obama continues his policy of depreciating the dollar to revive the US economy. This president is useless. Since he assumed office in 2008, the dollar has kept a downward spiral.  Although popular among the ordinary Americans, he cannot pull a way out of their economic woes. So he chooses the easiest way out.

    • yesyesyo

       Tanga! walang pakialam si obama sa philippine stock market.

      • jinx

        B-o-b-o, hindi nagbabasa. Kelan ba tumaas ang dolyar umpisa ng si Obama umupo diyan?  Hindi marunong si negro sa ekonomiya kaya minamanipula ang currency nila para tumaas ang export at ibalik ang manufacturing jobs sa US.

      • Iggy Ramirez

        The US dollar even sank lower than the Aus dollar and Can dollar.

    • ern

      You do not appreciate or depreciate as you like. Nobody will believe in your currency. These are market forces. Since 2008, probably true… but did you find out the years before that? Why not look at the father and son Bush what they had done to the economy.

      • jinx

         You’re the id–t who posted a comment that said OFWs remit money only days after the end of the month. As if all of them are capable only of sending money on the same day.

    • Jhun Santos

      The president nor the Government cannot dictate exchange rate, it is buoyed by what we call supply and demand

      • jinx

        Yes of course. But when a President approves the printing and circulation of more paper dollars, that will be another matter.

    • Jezzrel

      Naniniwala ka ba sa prophecy?

      • jinx

         Naniniwala ako sa pag-aanalisa ng binabasa ko, hindi sa propaganda ng media.

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