Exchange Rate USD to Peso September 22, 2022

It's a good time to be holding or earning USD. Everyone predicted it's decline, but USD is the only real safe-haven currency, especially while the world is in such turmoil. Other currencies pegged to the USD are also in a safer position, plus it's the prefered blackmarket currency (so it pays to always keep a few under the bed).

My UK pounds against the Php have come up marginally in the last 12 months, but the variation is volatile. The timing of sending money is pretty important.

The Euro is more-or-less following the same 12 month pattern against the Php - volatile but up a bit. I did however see a YouTube "Visual Politic" clip yesterday that predicted the break-up/decline of the Euro, due to the weakness of the German economy, following down the Western European countries like Greece in a sovereign debt crisis.

For my little projects in the Philippines, I'm buying building materials now, believing they'll go up soon due to shortages, manufacturing/supply chain problems. Also the Php currency depreciation is in my favour.

Commodities are up worldwide. In Scotland I have a whisky collection (surprise, surprise) and prices are steadily increasing. A bottle of spirits, being virtually an imperishable store of wealth, represents the cost of grain, cost of labour, also transport/fuel, storage space and retail overheads. It's a bit like The Economist Magazine's "Burgernomics", which compares the cost of a Big Mac worldwide (which is relatively a uniform item), used to rate the health of a national economy  considering the same variables.

Sugar prices are up too. In the Philippines I'd buy a few crates of Tanduay and store them, if I didn't think my relatives would drink them all. Lol.

Folgers coffee...pretty good. I used to get a tin in the UK every now and then. Today price, it's delivered for £13.00 (US 14.60) for 320 grams (11.5 oz), so Nespresso is my go to now.

@Enzyte Bob  Ya... it is very strong... some analysts say it will keep going all the way up to 60 - 65p

Looks like a good time to surrender/cash out from my SRRV fixed USD$ deposit visa programme...if the USD$ gets any higher & agree on stocking up of not only tap water but also the local brandy's as well asap....

Looks like a good time to surrender/cash out from my SRRV fixed USD$ deposit visa programme...if the USD$ gets any higher & agree on stocking up of not only tap water but also the local brandy's as well asap....

-@manwonder

Forget brandy. . . . .Buy a few thousand cases of Spam, the new money in the Philippines when everything crashes.

Maybe the Philippines should keep their script (peso money) but peg it to the USD, at P50 for One Dollar.

@Enzyte Bob what is the connection between oil and us dollar,,,lol,,moron,,,

the fed increase the interest rate in us so the dollar get stronger

@Enzyte Bob what is the connection between oil and us dollar,,,lol,,moron,,,
the fed increase the interest rate in us so the dollar get stronger
-@mike brant davao

There is a big connection on how one will values a dollar, some think it's the price of gold, myself I think how much oil a dollar can buy.

If $20 will buy a barrel of oil, that $20 has a lot of value.

If $120 buys a barrel of oil, that $120 is not worth much.

Since the start of the year the Russian Ruble has soared 40% against the so called strong USD.

You asked what is the connection, Putin has figured it out.

@Enzyte Bob again its all the fed in us,,,,he increase the interest rate yesterday to 3.25%, so the dollar get stronger against the peso 

@Enzyte Bob again its all the fed in us,,,,he increase the interest rate yesterday to 3.25%, so the dollar get stronger against the peso
-@mike brant davao

Why is the USD 40% weaker against the Ruble? With all the sanctions and a war the Ruble has gained strength against the USD. So why didn't the USD get stronger against the Russian Ruble?

OIL, We now buy oil, Russia sells OIL.

@Enzyte Bob

I thought about 40% of the USA oil needs were met at home with the remainder mostly coming from Canada, Nigeria, Venezuela, Saudi Arabia and Mexico.

@Enzyte Bob
I thought about 40% of the USA oil needs were met at home with the remainder mostly coming from Canada, Nigeria, Venezuela, Saudi Arabia and Mexico.
-@Cherryann01

Yes that is correct, I'm not saying we were getting 40% of our oil needs from Russia, but the Russian ruble has gained strength over the dollar and has increased it's value 40% compared to before the invasion.

On another post you mentioned a blow up doll. A fellow didn't have enough money to pay a bar fine in Angeles City so he hired a blown up doll. Well he bit her, she farted and flew out the window.

@Enzyte Bob

A fellow I know took his blow up doll back to the shop to complain that after half an hour she went down on him.

The fellow at the shop said, if I had know that, I would have charged you £100 instead of £30.

I've spoken to some financial/banker friends of mine.

they anticipate the US  Dollar to hit 60 pesos in a matter of weeks, and will fluctuate between 60-63 by end of October.  On the other hand, with the Russia/Ukraine conflict ramping up again with Putin's mobilization, Oil price reserves are going to soar even more so than we've seen already earlier this year...not a good sign to close off Q4

But for now, For those such as myself who earn in US $ and spend in Peso, hitting $1 = 60 a good thing. Not so much for those heading back to the west for a holiday/vacation anytime soon.

Yes it's been quite amazing. When I started building our small province home in May, the first few transfers were barely over 50 Php, that last one was at 57 (per USD). Of course building materials are up too, so I suppose it all washes out, and in fact I am already over budget, whether you look at it in pesos or dollars, haha. But I expected that.

I discovered an interesting situation when recently using my new Credit Card from the States. I wasn't sure if I could use it here without notifying the Provider; so tried it for a couple of purchases. Went right through without question, and when I checked on their website, I was happy to see that it was converted at the full exchange rate of the day: 57 PHP without any Foreign Transaction Fee charged. A week later, I used it at SM Supermarket and they asked me if I wanted USDLR or Peso Transaction. I chose USDLR since it was a USA Credit Card. When I returned home and calculated the Conversion Rate, it was at about 55 PHP compared to the days 57.5 prevailing rate. They applied a 5% Exchange Rate "Mark Up Fee" courtesy of BDO. Now I Know. Just wanted to pass this on to other Expats to avoid this loss of money.

I discovered an interesting situation when recently using my new Credit Card from the States. I wasn't sure if I could use it here without notifying the Provider; so tried it for a couple of purchases. Went right through without question, and when I checked on their website, I was happy to see that it was converted at the full exchange rate of the day: 57 PHP without any Foreign Transaction Fee charged. A week later, I used it at SM Supermarket and they asked me if I wanted USDLR or Peso Transaction. I chose USDLR since it was a USA Credit Card. When I returned home and calculated the Conversion Rate, it was at about 55 PHP compared to the days 57.5 prevailing rate. They applied a 5% Exchange Rate "Mark Up Fee" courtesy of BDO. Now I Know. Just wanted to pass this on to other Expats to avoid this loss of money.
-@talamban

Yes . . . I've experienced a 3% markup by the of the credit card facilitator and an additional 3% markup for an overseas charge by the credit card issuer.

I discovered an interesting situation when recently using my new Credit Card from the States. I wasn't sure if I could use it here without notifying the Provider; so tried it for a couple of purchases. Went right through without question, and when I checked on their website, I was happy to see that it was converted at the full exchange rate of the day: 57 PHP without any Foreign Transaction Fee charged. A week later, I used it at SM Supermarket and they asked me if I wanted USDLR or Peso Transaction. I chose USDLR since it was a USA Credit Card. When I returned home and calculated the Conversion Rate, it was at about 55 PHP compared to the days 57.5 prevailing rate. They applied a 5% Exchange Rate "Mark Up Fee" courtesy of BDO. Now I Know. Just wanted to pass this on to other Expats to avoid this loss of money.
-@talamban

Yes this is a common scam in Europe especially by the restaurant trade. Quite lucrative for them especially if you’re drinking fine wines to go with your ‘repas’. Some waiters will get a kick back on the final tab. Always pay in local currency.

We use a credit card to buy tickets etc and when travelling, as there's more protection if you we problems (as opposed to using a debit card). We've been hit by the sneaky conversion fees too, however.

It just occurred that credit card interest rates might go up with recent reserve bank interest rates hikes.

New York Times  21st Sept 22

"Credit card rates are closely linked to the Fed’s actions, so consumers with revolving debt can expect to see those rates rise, usually within one or two billing cycles. The average credit card rate was 18.1 percent as of Sept. 14, according to Bankrate.com, up from around 16 percent in March, when the Fed began its series of rate increases."

I saw somewhere else credit card companies have to give 45 days notice before increase, which might depend on terms of contract?

Anyway, the idea is to pay them off straight away to avoid any interest payments - which doesn't always work out depending on the amount and health of other accounts.

We use a credit card to buy tickets etc and when travelling, as there's more protection if you we problems (as opposed to using a debit card). We've been hit by the sneaky conversion fees too, however.
It just occurred that credit card interest rates might go up with recent reserve bank interest rates hikes.

New York Times 21st Sept 22
"Credit card rates are closely linked to the Fed’s actions, so consumers with revolving debt can expect to see those rates rise, usually within one or two billing cycles. The average credit card rate was 18.1 percent as of Sept. 14, according to Bankrate.com, up from around 16 percent in March, when the Fed began its series of rate increases."

I saw somewhere else credit card companies have to give 45 days notice before increase, which might depend on terms of contract?

Anyway, the idea is to pay them off straight away to avoid any interest payments - which doesn't always work out depending on the amount and health of other accounts.
-@gsturdee

gsturdee is quite right. Credit cards give you protection the debit cards don't. With the credit card you can always challenge the purchase for various reasons. Some cards will extend the manufacturers warranty on your purchases, some cards used on rental car payments will cover the insurance beyond what your own insurance covers.

As the bank rates go up so does your credit card interest go up. I have two low rate cards, before the interest increase one was 7.75 and the other 8.25. So if I have to carry a balance I use these two cards. The other cards are high interest cards which I pay in full each month to avoid interest. Using those cards it's like a free loan each month.

During the last credit crunch 2008:

My Bank of America Card with the low interest rate had a $24,000 credit limit. I had a $9,000 balance. BoA sent me a letter increasing interest to 20+ (I don't recall the amount). I contacted them and told them to cancel my card. They countered with no change in interest but my credit limit would be $12,000.

A second card (Chase) reduce my limit from $8,000 to $2,000.

I still have both cards today. A long history of time impacts your credit score. Having those cards for years gives me a higher FICO score.

@Enzyte Bob

That credit score is vital. I worked in the Middle East for 4.5 years with a modest tax-free salary, plus reliably used credit cards issued by a local bank. I always paid our bills including a personal car loan, and even saved enough for a house deposit. Naively I assumed we were in a satisfactory credit position.

In 2019 we returned to UK after being working expats since 2007. Even though I arrived to full-time employment, our overseas financial history counted for nothing. We couldn't get a competitive car loan, or mortgage, and had trouble renting a house because we had no credit rating. Initially, we couldn't register the kids at a school, or get NHS healthcare. That's because we needed an official address. To get said address we lived in a cheap hotel for 3 months while all these things were sorted out (I put on a weight because those Scottish breakfasts were deadly, and the pub was just downstairs). Since then I've been a model citizen and we have home address, utility records, UK credit card, and voting registration...and I am now qualified to get into debt.

I've spoken to some financial/banker friends of mine.
they anticipate the US Dollar to hit 60 pesos in a matter of weeks, and will fluctuate between 60-63 by end of October.
-@kristopherryanwatson

I also saw some posts by the so called economists that Peso-USD is forecasted to be 67 by end of 2023-2024-2025.

I am not sure if that is a good thing or not.

I've spoken to some financial/banker friends of mine.
they anticipate the US Dollar to hit 60 pesos in a matter of weeks, and will fluctuate between 60-63 by end of October.
-@kristopherryanwatson
I also saw some posts by the so called economists that Peso-USD is forecasted to be 67 by end of 2023-2024-2025.
I am not sure if that is a good thing or not.
-@Jackson4

No, it's not. While we expats (those receiving US dollars) benefit - in general, developing countries are hurt by the rising dollar. Much of their debt is tied to the dollar and becomes harder to service, and imported goods and medicines cost more. Roughly 40% of the world's transactions are priced in dollars.

https://www.nytimes.com/2022/09/26/busi … mpact.html

Mad at exchange rate shops that they have a majorly lower rate for $20 pieces.   The rate for $100 bill is 58.7 but since crazy ATMs near me dispense only $20 bucks, I was only offered 57.90.  This was the highest I could get as others were exchanging 20 bills as low as 57.2.   

So to all others travelling, make sure you go to your bank clerk and get 100 bills instead. 

I discovered an interesting situation when recently using my new Credit Card from the States. I wasn't sure if I could use it here without notifying the Provider; so tried it for a couple of purchases. Went right through without question, and when I checked on their website, I was happy to see that it was converted at the full exchange rate of the day: 57 PHP without any Foreign Transaction Fee charged. A week later, I used it at SM Supermarket and they asked me if I wanted USDLR or Peso Transaction. I chose USDLR since it was a USA Credit Card. When I returned home and calculated the Conversion Rate, it was at about 55 PHP compared to the days 57.5 prevailing rate. They applied a 5% Exchange Rate "Mark Up Fee" courtesy of BDO. Now I Know. Just wanted to pass this on to other Expats to avoid this loss of money.
-@talamban

Wow that is  robbery right there.    I was already pissed at getting only 57.9 from 58.7 rate, which was a P0.80  loss per Washington and here it is P2.50. 

Cash is king when you travel.   

@Big Mad Wolf good advise... I always bring the max when returning from a visit to u.s. (10k... in 100 dollar bills)... and don't forget... they have to be nice condition... and "newer" bills.... no old style, no cuts.