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Exchange rate

Discussion in 'Expat Section' started by Mr. Reddit, Jul 1, 2022.

  1. Mr. Reddit

    Mr. Reddit DI Member

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    As the exchange rate breaches 55 p to $1 USD, I am wondering what is causing this sudden rise, especially as the USD is being inflated away in the US? It seems like a good time to buy pesos if you need them.
     
  2. LENNY

    LENNY DI Member Showcase Reviewer

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    scary don't want rising too much anymore look what happened years ago in mexico peso crashed many of my friends lost alot of money
     
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  3. Crystalhead

    Crystalhead DI Forum Patron ★ Moderator ★ ★★ Forum Sponsor ★★ ★ No Ads ★ Highly Rated Poster Showcase Reviewer Veteran Army

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    This was posted about a week back and seems to sum it up why.
    https://www.pna.gov.ph/articles/1177514
     
  4. Notmyrealname

    Notmyrealname DI Forum Luminary Highly Rated Poster Showcase Reviewer

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    I used to be puzzled by that - why, even when problems originate in the USA, its currency appreciates. As far as I understand it this is due to the markets seeking safety in troubled times (and we definitely have troubled times now!) and 'safety' means the reserve currency (which is the US dollar). I have often read of the impending demise of the dollar - with possibly China/Russia and their allies creating a new reserve currency and backing it with gold (which, it is said, China and Russia have been buying up) - but as soon as something bad in the world economy sets off, there is a rush to the USD. The huge sovereign debt the USA has accumulated appears not to worry anyone (even though that debt will cost more to service as interest rates rise).

    Gold in itself could be an alternative safe haven but the markets know better than I do. However, I think gold will take off within a year or two - especially as people are seeing that Cryptos are not actually wearing any clothes! Cryptos particularly appeal to the young (who also buy ape NFTs!!!) and gold to the elderly but the young will grow old (but, of course, take their thinking with them).

    We also have to remember that currencies are paired when setting exchange rates and a World on the brink of recession may not be helpful to many Asian countries. So some of the dollar UP may be the peso DOWN.

    Good time to be a US citizen or having a big USD holding - my currency is up and down like a pole dancer but less enjoyable to watch.
     
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