International currency war


How will the Philippines fare amidst what is shaping up to be an international currency war triggered by the announcement of second stimulus of $600 billion by the US Federal Reserve? Brazil reportedly joined the so-called currency war – the term coined by the IMF director Dominique Strauss Khan – to defend its growing export industry as well as other so-called emerging market economies.

Read more: http://technorati.com/business/finance/article/brazil-enters-currency-war/

Like the rest of the Third World, a devaluation of the dollar would result in the strengthening of the peso. This translates to an adverse impact on our exports. Our exports would become more expensive in the world market.

The dollar remittances of our OFWs would also mean less in terms of pesos although tourists coming to the Philippines will need to spend more in terms of dollars for the same services and goods (that’s if our tourism sector would maintain the same prices; but doing so will make visits to the Philippines more expensive and thus dampen enthusiasm to visit our shores).

Nevertheless, it would also make it easier for us to pay off our dollar loans. We will need fewer pesos to pay off these dollar loans. In the import sector, we will likewise need fewer pesos to import the same volume especially if the imports come from the US.

Is this good for the Philippine economy? Brazil thinks it is bad for theirs.

4 responses to “International currency war

  1. I’ve been trolling the net why FlipGov are proud to have strong peso, while ChineseGov prefer to control their currency at depreciated value. JapaneseGov were also concerned at some point in time their exchange value to a dollar went up to 89yen to a dollar.

    Since Flippers are the brightest and intelligentist of them all they prefer strong peso. DUH!!!!!

    Flippers go to America study in ivy-school and never learn a thing except goot englsichtzes. HAAAAAY NAKU!!!!!!!

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  2. EVEN Amerikanos wanted ChinaGov to float their currency in the market instead of controlling it. HAAAAY NAKU! GALING FILIPINOS!!!!!

    Where are the POLITICAL ANALYSTS? Why don’t they apply their CRITICAL ANALYSIS on economy? Because economy requires logic. POLITICAL ANALYSIS simply requires going to a bar, smoke and get drunk and the following morning they get stories on politics. POLITICS requires only tsismis, innuendoes and gossips and intrigues.

    Economic analysis requires numbers which Filipinos are very very very very poor at. They are only goot in englsichtzes. FUNNY THIS PHILIPPINE JOURNALISTS, they fancy deep-sounding economic terms. Whereas American economy journalists use simpler terms.

    Why do Flipping journalists do that? Using deep words doesn’t make them right. ASK ANY REAL AMERIKANS WHO SPEAK REAL ENGLISH

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  3. There are plenty of news out there. Yet, Philippine journalists prefer politics. I wanted to know how many foreclosed homes in the Philippines. Go to Pag-Ibig. You get reams of listings of foreclosed homes.

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  4. Businessworld are run by Filipinos. Just yesterday they came up with scholarly analysis that strong peso is bad AFTER ALL!!!! Just yesterday they know! These journalists should check bloggers instead of perfecting their english.
    http://www.bworldonline.com/main/content.php?id=21364

    Can’t they analyze that english is a form of discrimination in the Philippines? Bad english is “low-IQ”. Goot englischtzes “high-IQ”. Measure of beauty is color of skin. The fairer and whiter the skin the prettier and handsomer. The brown-skin-punk’d-nose filipinos are uglies!!! And the “professional” peryodistas are perpetuating this subtle covert discrimination because they are sooo ignorant!

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