In the absence of other major economic issues, increasing interest rates generally puts upward pressure on the value of that country’s currency, as investors can now get a greater return. These are terms that refer to the general sentiment of a country’s central or reserve bank when talking about monetary policy.Ī hawkish outlook occurs when they want to prevent excessive inflation, usually by increasing interest rates. Growth is generally good, but we don’t want it to be too fast. The increase in an economy’s capacity to produce goods and services. In other words, $10 back in the day used to get you a lot more than it does now - over time the value of a currency decreases as a result of supply and demand. The rate at which the general level of prices for goods and services is rising and, in turn, a currency’s purchasing power is falling. Means more expensive imports, cheaper exports, more people overseas and less cash for your Philippine adventure. Higher valued currencyĬheaper imports (no more abandoning that online shopping cart), more expensive exports and extra spending money at the markets. When the AUD drops from 49 PHP back to 47 PHP it has depreciated and you are depressed. Is when the value of a currency decreases relative to another. Travellers appreciate this too, because it means more spending money and who doesn’t appreciate that? Depreciation When the AUD goes from 47 PHP to 49 PHP it has appreciated. When the value of one currency increases relative to another. These differences in forecasting are partially due to the extreme amount of data that goes into forecasting foreign exchange markets, and also just that the world is by nature a very hard thing to predict!īanks and economists use dozens of different sets of data and other sources of information to put together their forecasts, but with a little bit of research Aussie travellers can get a pretty good insight into the dynamics affecting fluctuations in the value of the AUD against the PHP.įirst of all, you might have to wrap your head around a little bit of the technical jargon economists use along with the macroeconomic fundamentals and their influence on exchange rates. What does this mean though? Well, let's use Westpac as an example.Īs you can see, the big banks don’t always agree on exactly which way currency exchange markets are going to go. We know how much it pays to stay on top of fluctuating exchange rates, so we’ve put together an outline of what the boffins at the bank have forecast for the AUD/PHP exchange rates for Q3 and Q4 of 2020. Now, let’s get stuck into the nitty of the Philippine Peso outlook and forecast for the rest of the year so you can start planning your trip and having a play with your handy budget calculator. These guerrilla pesos were highly illegal and you could be executed or shot for possessing them! During the WW2 occupation by Japan, the Philippine Government in exile printed "guerrilla pesos" which were designed to be redeemed in silver pesos after the war had finished. Keep your eyes peeled for a 100 Peso note spelling “Arrovo” instead because the notes are highly prized by collectors.ģ. In 2007, around 1000 of the brand new 100 Peso notes were printed with the incorrect spelling of former President Gloria Macapagal-Arroyo’s name and sent into circulation. The Philippine Central Bank constantly urges its citizens to bank the coins instead to get them back into circulation!Ģ. Not because there’s not enough coins on the islands, but because most of the coins are locked away in people’s piggy-banks and jars for savings. It is not uncommon for shopkeepers to not have enough coins for change.
3 things you didn’t know about the Philippine Pesoġ.
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