From the Midwest redneck author of "The Rooster Crows at 4am!," "Lizard Poop!," and "The Philippines Expat Advisor"
US Dollar to Philippine Peso Exchange Update: Peso Hits 4-Yr High
Are you an American expat living in the Philippines that keeps a close eye on the US Dollar to Philippine Peso exchange rate? Maybe you're a Filipino working overseas who sends money home to your family every month as my asawa used to do years ago. If so, the recent report that the Philippine peso recently hit a four year high is not welcome news for you. I'm certainly not thrilled with it. After almost three years in the Philippines, the current rate of 1 USD to 41.68 PHP doesn't do much for the budget.
Check out the above chart of historical US dollar to Philippine peso exchange rates since we've moved here. (Source: fxtop.com)
Though today's exchange rate is at it's lowest point since we first arrived in Guimaras, a rural province in Western Visayas, August 2011 (circled in yellow) was also another bad month. The best exchange months occurred when we moved in July 2009. May 2010 (circled in red) was another good month.
In July 2009 1,000 US Dollars would yield 48,300 Philippine Pesos. Today that same $1,000 exchanges for 41,690 pesos. That's a loss of 6,610 pesos each month. When you're on a fixed income, that hurts.
But we sit now and wait for our monthly deposit to be sent from our retirement account back in the States and won't do any exchanges until we have our allotment.
Maybe the exchange rate will even worsen in the coming days? Hopefully not, but I can't see any major improvements with the current state of affairs back in America that will strengthen the US Dollar.
Aside from the continuing dispute the Philippine government has with China over in the South China Sea, I don't see anything on the horizon here that would cause the weakening of the peso at this time.
Though I'm concerned, we'll just weather the storm and kick back and enjoy life despite the current exchange rate. It's still more fun in the Philippines. Most of the time.