Connie asks “Is it time to dump those dollars?”. Obviously, the weakening dollar has affected professional bloggers across the globe as well.
When I opened up my first dollar savings account about 3 years ago, I bought a sizable amount of the green bucks at Php56.40. Today, the peso-dollar exchange rate stands at Php43.27. That’s a net loss of Php13.13 for every dollar that I have in the bank. That loss closely amounts to a brand new car or a down payment for a house and lot. And I thought going with a dollar savings was the best fiscal move I made in years.
Other int’l probloggers like Darren Rowse and John Chow were also affected since the Australian and Canadian dollars were much stronger against the US green bucks. I reckon this is also true with the rest around the globe.
As expected friends and relatives remitting dollars from the US are also having the same sentiments over the weak dollar. And it will continue to roll down as December approaches.
So the question stands, is it time to dump the dollar? or should we wait it out until after the 2008 US Presidential Elections? Your guess is as good as mine.
My fiscal strategy – stick it out with the dollar. Make do with whatever peso-denominated earnings and pay int’l bills in dollars.
BTW, I would *not* be putting any confidence in the results of the 2008 election changing anything. Both the Democratic and Republican frontrunners (Hillary and Rudy Giuliani) are very similar to each other. Both support staying in Iraq, getting tough on Iran, overspending on the US military and little difference in their economic strategies, which aren’t exactly advantageous for Filipinos working there.
Besides, the troubles for the US economy are largely beyond their control. The Federal Reserve is going to be cutting interest rates anyway, which is going to cause further dollar decline and inflation.
Even worse, it’s going to start becoming very ugly since the baby boomers start retiring en masse around 2009, with a bigger cohort by 2011 or so. With the USA already almost $10 trillion in debt, and stuck losing in multiple wars, it’s going to get very ugly.
Like I was saying earlier, learn a language other than English– German most useful if you’re doing technical work, Chinese a big plus anywhere in the region or for global business (Japanese less useful but can still be advantageous in E Asia), otherwise target the language depending on where you go.
And look seriously at working in Continental Europe, where you earn a salary in Euros! That makes an enormous difference, especially if you have a professional background.
Twitter: techathand
says:
It is an advantage for me since I am getting the earning in Saudi Riyals. And until this moment the exchange rate of dollar to Riyal is still the same 5 years ago..
Here’s what I’ve been doing since the PhPeso started getting stronger.
I pay for my international purchases and billings under USD.
I get payments only under EURO. Or find a way to get EURO instead of USD.
More PhP money for me if I use EURO than USD ^_^
And why the common people aren’t feeling the effects of the stronger peso? Mainly because we’re looking at it differently – like Public Transportation Fare and Food Prices.
In reality we already benefited. Jeepney 7.50 fare. If Peso is still trading close to PhP60 = U$1.00 like years ago, our Jeepney fare today would be more than PhP10.00 already, and who knows what kind of trouble and wars it may cause our country.
We’re back at 7.50 fare not because of the Peso-Dollar, but because of Oil Price Hike and Parts. If Peso-Dollar will become PhP30.00 to U$1.00 by December, then the Jeepney fare can be rolled-back to 5.00, or 2.00 (if Parts will also go down).
If you’re trading using Peso, then it is not ‘obvious’, but it is there, we are all benefiting from it. If you’re trading in U$, then you felt it strong.
As one mentioned, cheaper domain names.
I will add, cheaper international billings and purchases.
Businesses – cheaper licensing deals
Country – easy loan payments.
It’s there. We just don’t see it, but it is there. Look at the benefits from a different angle and direction.
Again it hurts, I know. In my opinion, release those dollars NOW NA!! This is only the beginning, watch out for ADB’s announcement and the ASEAN projects. They’re ready to launch the ‘buffer’, especially now that experts are saying the US is nearing another recession. We really need a buffer now before we feel another 1997 crash/blow.
To add, I strongly agree with Emilia.
It’s EURO not US DOLLAR anymore.
It’s CHINESE not American English anymore.
It’s GERMAN not English English anymore.
And yes, the USD is going to get weaker and weaker. As I’ve said, this is just the beginning.
ADB is ready to announce the buffer that will even make our region stronger than it is now. The Asian Currency Unit or ACU, it is a weighted basket of the founding-countries’ economies. We’ll soon be pegging the Peso to ACU, and ACU pegging to both Dollar and Euro. (No Yen or Yuan, as it is planned to let them join the ACU second batch, together with India and Australia.)
In other words, our economy will be integrated to the region and thus higher economies will pull us up. Though it won’t be much since (1) lower economies will pull the others down and (2) the Philippines is already on the lower end of the “middle” economy (aka 2nd World).
Hold your dollar, you lose in a few years time. Either convert it now, or start getting EUROs instead.
I love EURO. And I will love more the ACU, eventhough it is not yet a “monetary system”.
Gone are the days of USD dominating the market.
Gone are the days of English dominating the world language.
Today, if you want to be competent and stable:
“EURO not US DOLLAR.
CHINESE not American English.
GERMAN not English English.”
Welcome to the early 21st Century. By the closing of the 21st Century, it will be East Asia’s time.
Regardless, let me say – it is ALREADY OUR time. Let’s break from the Western practices and thinking.
Twitter: marhgil
says:
With all those comments from Emilia and JC John Sese Cuneta, gusto ko na tuloy mag-open ng Euro account. meron ba dito sa pinas?
[...] beens” because I should be grateful that I am still liquid. After reading Abe Olandres’ Weakening Dollar hurts Probloggers, I started to think that maybe I need to spend a little more. That’s a net loss of Php13.13 for [...]
Dump the dollars !! Its the best idea anyone could have..
http://www.videosearchtool.info
I think we can still stick it out with dollars. Let’s just wait and see if they can recover from their fall. If not, go Euro!