Aussie dollar, RP peso strong against the US dollar

For those who have been waiting to send extra money back home, especially now that the Australian dollar is hitting high, you may be in for some disappointment.

The Aussie dollar has risen above the US$0.90 level and yet A$1 could only fetch a shade over Php40.

Compared to some 18 months ago when the Aussie dollar was only a touch close to US$0.80 and yet it was getting more than Php41 per A$1.

The reason for this is simple. The Aussie dollar and Philippine peso both moved strongly against the US dollar at the same.

The Philippine peso hit its highest in seven years this week when it traded at Php43.885 per US$1.00 last Monday.

This strong trading by the Philippine peso according to Bangko Sentral ng Pilipinas was due to the downturn in US property combined with high level of remittances from overseas Filipinos.

In a media release the other day, 7 November, the BSP also announced that the Philippines gross international reserves (GIR) rose to US$32.4 billion as of end-October 2007, 4.9 percent higher than the end-September 2007 level of US$30.9 billion.

At that level, the GIR can cover 5.8 months of import goods and payments of services and income. That level, according to BSP, is also equivalent to 5.4 times the country’s short-term external debt based on original maturity and 3.3 times based on residual maturity.

BSP also explained that the large build-up in GIR was boosted mainly by the central bank’s foreign exchange operations and to continued strong inflows of foreign exchange. #

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Posted by Romy Cayabyab on Nov 9 2007. Filed under Business, Money and Finance. You can follow any responses to this entry through the RSS 2.0. Responses are currently closed, but you can trackback from your own site.