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Peso soars as Aussie dollar crashes


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In the last few months, the once stable Australian dollar has devalued by 25% against the Philippine peso and most other currencies. And the Aussie is still falling by the day, it's fastest drop in 25 years.

 

Aussie expats retirees here in Cebu living on fixed incomes are the worst hit with the peso soaring today to only 32 pesos for an Aussie buck.

 

For example, two months back Aussie pensioners here in Cebu living on AUD $1,000 per month could exchange that for 43,000 pesos. Today they would be lucky to get 32,000 pesos. That's a loss of 11,000 pesos income per month.

 

And it's not just Aussie foreigners who are losing out. Many Philippine families rely on remittances from their relatives living in Australia. Phil-Aust residents and OCWs back in Australia hit with rising mortages and house rent prices down under, can't afford to remit back to the Phils like they used to.

 

The Australian economy is relatively okay compared to many other countries and the four major Australian banks are stable. When all the world is in a financial crisis, why are the currencies here in south-east asia (Philippines, Thailand, Malaysia, Singapore etc) so strong against the Aussie?

 

So when will it all end? And when will the AUD $ get back on track? The finance gurus on Bloomberg and CNN Money don't seem to know, and neither do I. :any-help:

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In my unprofessional opinion , because I have made a few bucks in AUD, is 60% of Australian exports are commodities... It will depend now on the demand from China and Asia to see if it lifts in the near future. the AUD has been oversold.

 

that's my take on it .

 

The pendulum has swung.

 

edit, ADDED 12 months will give it time to settle down again or fall into a giant hole!

Edited by JLG
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For example, two months back Aussie pensioners here in Cebu living on AUD $1,000 per month could exchange that for 43,000 pesos. Today they would be lucky to get 32,000 pesos. That's a loss of 11,000 pesos income per month.

 

Just curious, I have a fairly good idea how much a month most Americans pensioners are making here in the Philippines but really have no idea what Australians on average make.

 

Could you give me your best guess?

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Just curious, I have a fairly good idea how much a month most Americans pensioners are making here in the Philippines but really have no idea what Australians on average make.

 

Could you give me your best guess?

Australians cannot claim or get paid an Australian government pension if they are living in the Philippines.

 

The maximum single-person pension paid in Australia is currently AUD1,204.50 per month (now about PHP38,500).

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smokey

I was just as confused to watch the dollar go from 54p to 1 and in 9 months drop to 40p to 1 there never seems to be a real reason.. Is the peso stronger ... (cant be ) or is the ausie weaker ... has to be weaker as the peso strength seems based on smoke and mirror bull more then reality...

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FarEast - that's exactly what I was asking in my posts on page 3 of "Am I Mad" a couple of entries below this one..

 

Living in Thailand at the moment and similar currency drops here.

 

The AUD is performing very badly - now cash exchange rate apx 21 baht to one AUD. Less if doing a TT from Australia to here..

 

I travel to & stay in the PI for extended periods as well but am wondering, with the huge loss of income per month via the exchanges - what to do next!

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MattFromGA

This is one of the least discussed ramifications of living in the Philippines; earning an income in one currency and needing to purchase everything in another. You are at the mercy of exchange rate all the time. I'm feeling fairly good now because the USD is buying more pesos than it has in a while. However, my dick got dug into the dirt as the peso slid from 55 per USD when I made business decisions and budget planning, to almost 40 per USD. Thats almost a 30% hit in buying power, not to mention the ever increasing prices for things.

 

The accumulated "losses" can be devistating, but there isnt much one in these situations can do about it.

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A_Simple_Man
So when will it all end? And when will the AUD $ get back on track? The finance gurus on Bloomberg and CNN Money don't seem to know, and neither do I. :any-help:

 

It may cheer you up to see that the Austalian banking system is rated in the top 4 in the world:

 

"By Rob Taylor

 

CANBERRA (Reuters) - Canada has the world's soundest banking system, closely followed by Sweden, Luxembourg and Australia, a survey by the World Economic Forum has found as financial crisis and bank failures shake world markets.

 

But Britain, which once ranked in the top five, has slipped to 44th place behind El Salvador and Peru, after a 50 billion pound ($86.5 billion) pledge this week by the government to bolster bank balance sheets.

 

The United States, where some of Wall Street's biggest financial names have collapsed in recent weeks, rated only 40, just behind Germany at 39, and smaller states such as Barbados, Estonia and even Namibia, in southern Africa."

 

http://ca.news.yahoo.com/s/reuters/081009/..._soundest_banks

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Thanks Dave - but it doesn't ease the pain of the losses due to the exchange rates!!

 

Even if the Aus banks rated #1 on the list I reckon we would still be going through the same motions with the downward slippery sliding AUD.

 

Well, must keep the chin up, think positive, all that...

 

Now the geniuses in Aust govt have just about wiped out manufacturing & other sectors, and selling off our minerals, oil & gas to overseas

owned Co's - next year they predict a big downturn in mining and other raw material requirements.

 

That WILL put the AUD into a tailspin of which I foresee little recovery.

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Yep, I was on the verge to move to Cebu on the Australian pension and have now put it off to see where all this is going, how in hell the Peso can out perform the Au$ by 20% + is beyond my comprehension. There are a lot of Australians living on the age pension in the Philippines for years, how they are going to handle this massive drop of P11-P12,000 a month boggles the imagination.

Edited by Wirraway
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MattFromGA

You should always look for the bright side of things like this. At least they will get a better feel for filipino living. This is something they have had to deal with for many, many years; getting by on less.

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FarEast - that's exactly what I was asking in my posts on page 3 of "Am I Mad" a couple of entries below this one..

 

Living in Thailand at the moment and similar currency drops here.

 

The AUD is performing very badly - now cash exchange rate apx 21 baht to one AUD. Less if doing a TT from Australia to here..

 

I travel to & stay in the PI for extended periods as well but am wondering, with the huge loss of income per month via the exchanges - what to do next!

I hear ya Rico. The Philippine peso has climbed again today against the AUD $

and its not over yet. You would be lucky to get 31 pesos for you buck today

on the cross rates and probably less on the street with the money changers. :rolleyes:

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On reflection, there's really nothing an Aussie expat living in Cebu

can do except live within your reduced budget, wait and hope that

the AUD $ recovers.

 

And it will.

 

But no one knows how long that will take. So why not follow

MattFromGA's words of advice and stay upbeat during this difficult time...

 

You should always look for the bright side of things like this. At least they will get a better feel for filipino living.

Ready chaps, lets take it from the top... :rolleyes:

 

And...always look on the bright side of life,

Always look on the light side of life.

 

Some things in life are bad

They can really make you mad

Other things just make you swear and curse.

When you're chewing on life's gristle

Don't grumble, give a whistle

And this'll help things turn out for the best.

 

Always look on the bright side of life,

Always look on the light side of life.

 

If life seems jolly rotten

There's something you've forgotten

And that's to laugh and smile and dance and sing.

When you're feeling in the dumps

Don't be silly chumps

Just purse your lips and whistle - that's the thing.

 

Always look on the bright side of life,

Always look on the light side of life.

 

- Words and music by Eric Idle (from Monty Python) :):D

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