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smokey

Why Does The Peso Keep Getting Stronger

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savarity



  It reminds me of 40 years ago in the US when bad weather ruined the avocado harvest in the south, and the prices skyrocketed.  The following year and thereafter, as the harvest returned to normal and above, the prices remained at their higher level, never to return to the base price before the bad harvest, no matter the abundant supply. 


Well, the cranberry market in the late 90s in the US stands in contrast to that. Prices certain fall when demand declines but supply increases or stays the same.

As far as the peso, well to the usd, the usd index is just down. So the $ is just down for its own reasons.

And the peso has a lot going for it;

-low government debt. No real push for massive spending in the legislature.

-lots of Philippine firms having to write bonds due to the crisis, financing in pesos, demanding pesos.

-fall in imports, so that's decline in demand for pesos to usd.

-low oil prices

-lots or remittances still coming in, some decline sure.

-inflation is not to high due to low demand.

Currencies don't have to follow economies. The Philippines economy is in a terrible shape, no doubt, not saying otherwise.
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smokey

Ok confused again    news   philippines will start another batch of stimulus THIS WILL MAKE THE.PESO STRONGER

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Daddle
14 hours ago, smokey said:

Ok confused again    news   philippines will start another batch of stimulus THIS WILL MAKE THE.PESO STRONGER  

Yes, reasonable. Confusing too. Prices are guided by calculations and emotions.

The PI tend to be very frugal with spending on stimulus type things. So an increase is seen as a good thing for growth. And I agree. Big, fast, direct economic effect. Little downside in the bigger picture of asian growth potential.

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smokey
13 hours ago, Daddle said:

Yes, reasonable. Confusing too. Prices are guided by calculations and emotions.

The PI tend to be very frugal with spending on stimulus type things. So an increase is seen as a good thing for growth. And I agree. Big, fast, direct economic effect. Little downside in the bigger picture of asian growth potential.

I read exports down 70% unemployment 45%Ofw  could see 750.000 loose jobs

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