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Foreign Currency Exchange Rate

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Rescuer
  9/19/2016 19:00 EST

Does anybody know what affects the foreign currency exchange rate?

charkee
  9/19/2016 19:50 EST

Well, that's a complicated question. Currency values can be effected merely by speculation. It can also be totally arbitrary. (though the puppet masters will never say this). The international bankers can devalue a nation's currency when it deems the leadership as being unfriendly to their interests. And it can also happen because of internal mismanagement. Several times in history currency values had plummeted because enemy forces had flooded the nation with counterfeit money. Britain devalued the dollar during the civil war to the point the dollar would no longer be accepted for international trade. Ecuador had their currency devalued by 50% overnight because the IMF told them to do so. Soros devalued the Italian Lira, enough to steal the pensions of millions through speculation.

This is how things work: Large loans are given to poor nations, but the money doesn't go to the poor, it goes to international corporations within that nation, yet the nation has to foot the bill. The purposely seek out corrupt politicians to pull this off.

Then the nation must pay their bills in DOLLARS. Where do they get dollars? They are forced to export and thus their natural capital to build improvements are looted and sucked into the Wall Street/ City of London world parasitical banking system, where they merrily speculate it away in derivatives investments.

This is the reason for the rebellion that is called BRICS. This is why the destabilization is occurring in Brazil, Ukraine and others now. This is why these bankers are clamoring for world war with China and Russia.

This is the real reason Libya, Iraq, Panama (they didn't get is so bad as Noriega was soon captured) and others were bombed back into the dark ages.

Duterte is beginning to suffer the first step that every one of these nations suffered, the international smear campaign. Next they call in the Jackles. (their favorite MO are plane crashes) If that doesn't work, then it's military invasion.

The reason why Iran was not destroyed is that they have mutual defence treaties with China and Russia.

I personally watched a CIA backed coup in Honduras depose a newly elected president that was intent to do good for his people, but that is never good for the international bankers.

Venezuela: They tried to take control of the international corps that were bleeding their economy dry and now are being punished with hyperinflation and shortages of essential goods.

And there is a lot more to answer that question....... but I'm sure I have already upset a lot of you.

A good book on the subject would be Confessions of an Economic Hitman, by John Perkins.

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trappedinhell
  9/20/2016 02:16 EST

@Charkee Totally true. Yes, the "jackals" are let loose if the country's newly elected leader doesn't cooperate with the preliminary bribe $$ (Kerry giving $30 bn as military aid to Du30 > then kicking out US forces in the southern PH > bad move on Du30). Same thing happened with Hugo Chavez of Venezuela on the failed coup enginered by the US State Dept. Yes, "they" will take down Du30 by funding his local opposition (the Yellows), just as what they did to Dilma Rousef of Brazil, and Maduro of Venezuela. Right now Du30 is consolidating his Armed Forces & National Police to avoid any US-sponsored military coup. He knows his life is in danger because he "rocked the boat".

Rescuer
  9/20/2016 03:12 EST

charkee ~ Thank you for the detailed explanation. I am just curious to know what causes fluctuations here from, let's say, 44 pesos per USD, to 48 pesos per USD, as an example.

charkee
  9/20/2016 07:24 EST

Rescuer: the "official" reasons are often not the real reasons. The international bankers have the power to tell the Philippine peso to dive simply by devaluing it against the dollar arbitrarily. I don't know what the "official" reasons are for the dollar/ peso move, as I no longer pay attention to what they say.

mootpoint20
  9/20/2016 13:00 EST

Gosh! All Rescuer wanted was the exchange rate and he got a dissertation from Adam Smith, Karl Marx, and Keynes! (Watch out, Rescuer, when you ask for directions to Manila.)

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IDAHO1
  9/20/2016 14:13 EST

A good university course in Economics would help explain a lot of it for you.
There are, of course, speculators, as well as giant corporations that move huge amounts around from time to time, and sometimes day to day.
One thing seems to be dependable.
The exchange rate is lower right after Christmas, when the Phils is awash with US $ sent over to families for the holidays in the preceding month(s).

Singlelooking
  9/20/2016 14:54 EST

The simple answer is interest rates.
Since there is a high probability the US will raise interest rates by December, the buck will be rising for a while.
Since the swissie is scheduled to drop interest rates, it will be dropping more. The Euro is also in decline.
The strongest/safest currency is the Norwegian kroner since there is no debt to GDP, in fact they are plus 25%!.
Like US dept is 106% to GDP. But its raising rates while most everyone else is lowering them.
When the buck raises the Euro drops usually by the same amount.
But when the buck rises the third world Asian currencies take the hardest hit.
A country's expected GDP will also matter. How well economically they are doing.
But interest rates or fear/anticipation of a raise or drop
Is what really defines it.

Rescuer
  9/20/2016 17:46 EST

Great! I only need to take a good university course in Economics :-)

Rescuer
  9/21/2016 02:45 EST

mootpoint20 ~ I was thinking the same thing, and I still don't know what causes the daily fluctuations in the foreign currency exchange rates. I never ask for directions here unless I want to get lost ;-)

GaryD
  9/21/2016 03:15 EST

If there was an answer I'd be a millionaire over night

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gelynch52ph
  9/21/2016 07:47 EST

charkee I agree with you through most of the first paragraph in which you said,

“Well, that's a complicated question. Currency values can be effected merely by speculation. It can also be totally arbitrary. (though the puppet masters will never say this). The international bankers can devalue a nation's currency when it deems the leadership as being unfriendly to their interests. And it can also happen because of internal mismanagement.”

After that your comment is little more than a conspiracy theory with little basis in fact and should be fodder for the Alex Jones crowd.

Now to answer the original question briefly... It IS a complicated answer and some things that affect the exchange rate are stock markets, wars and a general outlook on the strength of the economy of a nation in relation to that of the currency of another country. In recent days the Philippine stock market has undergone a bit of a slump and so the peso has slipped in value compared to the US dollar.

The first article I read today about foreign investment in The Philippines acting scared and withdrawing money turned out to be a smear aimed at Duterte and while true that investors were selling off Philippine stocks and hurting the stock market, the overall effect is that they are doing so because Duterte wants to open the markets to foreign competition which will hurt local stocks. That has caused a minor devaluation of the peso to the dollar and I’m hoping it gets worse for a while so I get more pesos on payday. The Philippine government, during the time of GMA manipulated the value of the peso internally in order to pay dollar debts quickly at an advantage to the country. China for years kept their money artificially low in value in order to improve exports. When a country needs to buy they try to make their currency strong.

When something major league bad happens in the business outlook of a country, its currency will probably drop in value. Say for instance, that Korean companies could no longer obtain the materials necessary to make cell phones and Samsung and LG Electronics went bankrupt, the Korean WON would lose value on the world market even though those phones are made in China.

charkee
  9/21/2016 12:43 EST

gelynch52ph I've been around and I detest Alex Jones, but occasionally he gets people that know what they are talking about.

The economic masters claim the price of oil going down is bad, yet they earlier claimed the price going up is bad. The masters always have a reason even if its schizophrenic and people eat it up.

I have lived in nations poorer than the Phils and have worked for NGOs. I have personally lived through a coup and another attempted coup, both backed by the CIA.

I have come to reject what the "experts" say for the very reasons stated above. BTW those that don't see conspiracies live in la-la land.

Are you aware that the USA is the world's largest debtor nation? Derivatives investments alone are nearly 20 times the world GP? Did you know that a 1% drop in these would make 2008 look like a party?

Perhaps you don't see that the USA no longer produces enough to sustain itself? And how does that keep the dollar strong? It's because the bankers can arbitrarily devalue other currencies to keep it on top and force nations to pay their debts in dollars only.

China is a different case and I won't go into that much, except they are much wiser than the Wall Street/ City of London crowd. Both China and Russia see the above and they are preparing with the BRICS and are already building massive infrastructure projects through south Asia and Africa.

Again this is why I no longer read "analysis" because it's smoke and mirrors. The the transatlantic banking system is on life support and will eventually go belly up and there is no saving it. The Brexit is just a symptom and precursor of coming problems.

Now take into account that China graduates 10x the engineers as the US. and manufacture the nuts and bolts for the US and it's military. Picking a war with them is utter stupidity. But you may not see the connection with the above and it will take more time to explain than I care to give at this time.

Did you know that Hunt's catsup is made with Chinese tomatoes? Did you know that the USA is now a net food importer? Check out the USDA stats for yourself. This is just the tip of the iceberg. The US manufacturing and agricultural output is at a lower level per capita than during the 1930s. It's a mess and the "experts" never mention any of the above. In the 1930s factories were closed, but today there are no factories to reopen as they have been dismantled for scrap or reassembled in Mexico, China or other places.

The root of the problem is people think in terms of money rather than in terms of physical production of the goods needed to for people to live well.

Rescuer
  9/23/2016 01:38 EST

In the news today:


http://business.inquirer.net/215290/us-fed-decision-to-slow-peso-weakening

bang4dabuck
  9/24/2016 01:26 EST

Duterte smear ?

Name 1 upper echelon drug lord that is incarcerated or dead. I heard his son, you know the one that's a vice mayor that had his girlfriends partner assassinated is buddies with Peter Lims son, purportedly the biggest lord in the Phils. It all sounded good but nothing has changed, the people in power are busy abusing their power and probably diverting funds to their selves, family and friends. Sad really. If I wasn't a male I wouldn't be here.

bang4dabuck
  9/24/2016 01:31 EST

The girlfriend was both a business and romantic partner who Duterte's son was seeing on the sly. It seems both partnerships had come to a head. The business was a large successful one regarding vitamins or so I'm told. It's been in the papers lately. BTW the dead guy was a Brit. Somethings will never change here.

bang4dabuck
  9/24/2016 01:31 EST

The girlfriend was both a business and romantic partner who Duterte's son was seeing on the sly. It seems both partnerships had come to a head. The business was a large successful one regarding vitamins or so I'm told. It's been in the papers lately. BTW the dead guy was a Brit. Somethings will never change here.

seernai
  9/24/2016 01:41 EST

May I remind you gentlemen not to put up here anything to do with Philippine politics and hearsay about high profile personalities you don't know who is reading this , by all means have your own opinions but don't put them up here

seernai
  9/24/2016 01:46 EST

This was mentioned during the Election it simply is not safe to make statements which are deflamitory against people you don't know say I'm over sensitive if you want I don't give a damn I'm just trying to stop someone from getting into trouble ok

Rescuer
  9/24/2016 05:55 EST

What does this have to do with the Foreign Currency Exchange Rate?.........

The girlfriend was both a business and romantic partner who Duterte's son was seeing on the sly. It seems both partnerships had come to a head. The business was a large successful one regarding vitamins or so I'm told. It's been in the papers lately. BTW the dead guy was a Brit. Somethings will never change here

bang4dabuck
  9/24/2016 08:09 EST

You are right. Keep your head low over here, we are not in a Constituitional land. I apologize and hear you.

bang4dabuck
  9/24/2016 08:10 EST

I was just countering THE INTERNATIONAL SMEAR CAMPAIGN that was mention, that's all.

seernai
  9/24/2016 08:34 EST

That's ok , just be careful what you say in future as this is a public forum and this is a constitutional country, you can download it from google, but you really do have to be careful what you say in any social networking immigration officers came to an ex pat meeting a couple of months back and reminded us we are guests in this country and not to get involved in Philippine politics or name calling or insulting the locals just live your life and enjoy the experience and privilege of being here , try to learn the local language as well even if it's only a few simple phrases . They appreciate it

mootpoint20
  9/24/2016 10:57 EST

"...Hunt's ketchup is made with Chinese tomatoes" Chinese tomatoes? What? Well, Rescuer I hope your satisfied for causing an international incident on this blog.

trappedinhell
  9/24/2016 12:51 EST

@seernai About that immigration officials that told you not to comment on Philippine politics & insulting the locals; there's this American expat in YouTube who has done about 5 videos already attacking and slandering Duterte. He has done numerous videos too calling expats sexpats & their Filipina wives whores, sluts, and gold diggers. He's been doing YT blogging for a long time now. Philippine Immigration & Duterte Administration don't even bother with the guy. He is free roaming the Philippines right now. What's your take on this seernai?

seernai
  9/24/2016 13:10 EST

Hi I think I know who you mean but we have Been told not to mention his name He is the exception rather than the rulers I understand He has a problem which cannnot be discussed on a public forum,

bang4dabuck
  9/25/2016 02:28 EST

Constituitional state and extra judicial killings, do they belong in the same sentence ? The elephant in the room. He needs to pay attention to what these other nations think after all probably a HUGE chunk of change and part of this economy is based on OFW wherewithal. I'm sure what's going on here now is what a lot of Teabaggers would like to be instituted in the US, especially if your color is not right. Relieve the oligarchs of their stranglehold on the country and lock up the drug lords in a REAL jail.

seernai
  9/25/2016 02:53 EST

To be honest what would you do when you have other countries sticking their nose in your countries business when they cannot sort their own problems out ? It's a bit hypocritical

Rescuer
  9/25/2016 02:58 EST

seernai ~ Yep, that's exactly what DU30 and his administration are saying.

Rescuer
  9/25/2016 03:09 EST

bang4dabuck ~ You can't change the culture. DU30 cannot be prosecuted while in office, or, because of his age, after his term, so he can do whatever he wants to, or thinks is necessary to clean up the Philippines. What seems overly harsh in other societies, is not viewed the same way here. A 91% approval rating is evidence of this. I think the jacuzzis and TV's will be removed from the maximum security prison in short order :-)

bang4dabuck
  9/25/2016 05:14 EST

So I guess he is just waiting for the prison renovations to be complete before he loads them up with the RIGHT people even though if he put the TOP 20 in, I'm sure would put a major, MAJOR kink in the flow of drugs here.

bang4dabuck
  9/25/2016 05:20 EST

Seemai had indicated the is a Constitutional government. I say maybe in print. Every Teabagger i.e. if they are REAL libertarians should support the legalization of all drugs. As long as you don't physically cause harm or infringe yourself, go ahead and kill yourself it's your right. Promote rehab instead of incarceration which really only turns them into REAL criminals.

Rescuer
  9/25/2016 05:42 EST

bang4dabuck ~ Depends how many the top 20 are supplying. If there are 4 million users and each supplier is supplying 100 users, there would be 40,000 suppliers.

Rescuer
  9/25/2016 05:47 EST

bang4dabuck ~ I think like 700,000+ have turned themselves in already. That's a LOT of people to deal with, regardless if it is prisons or rehabilitation facilities.

bang4dabuck
  9/25/2016 06:11 EST

Let me be blunt and to the point, THEY GOT BIGGER FISH TO FRY !!! Stop wasting time on petty druggies and FRY BABY FRY ,

Rescuer
  9/25/2016 22:05 EST

He's doing both. Supply and demand. Plus DeLima, the Hillary Clinton of the Philippines.

Rescuer
  9/25/2016 22:07 EST

bang4dabuck ~ He is doing both. Supply and demand. Plus DeLima, the Hillary Clinton of the Philippines.

gelynch52ph
  9/26/2016 06:36 EST

Why would you compare a drug dealing, thieving criminal to the person who will be a great POTUS?

Now, what did DeLima have to do with explaining to the original poster how currency rates are changed?

gelynch52ph
  9/26/2016 06:56 EST

The peso weakened to day to 48.22 to the US $ and I hope it continues to slide.

Investors are pulling out of the Philippine stock market because they fear that Du30 will soon be able to change the Constitution and allow foreign investment. That competition will obviously hurt Philippine held companies.

bang4dabuck
  9/26/2016 10:18 EST

That will be a BIG step in the right direction. I will applaud that move IF the effort is there. I expect rampant obstruction from the old money here. The customers and employees will benefit from this, much to the chagrin of the handful of families that have puppeteered this country. I hope to say BRAVO !!! Hilary yeah but I would much rather FEEL THE BERN.

Rescuer
  9/26/2016 16:00 EST

Thieving criminals are thieving criminals, regardless if their MO is a fake money laundering personal slush fund foundation or a prison turned into Las Vegas. The way that DU30 is handling the problem that DeLima has participated in affects foreign investment and the foreign currency exchange rate. The more direct comparison is the lies that the criminals tell to attempt to cover up their criminal activities.

Goodlooking
  9/26/2016 17:59 EST

Foreign Expats should not meddle in Philippine politics here in the forum. Dandy chance for exportation. President Duterty's policies are Philippines alone. Violators will sure to be suspected to be offended by his anti drug decisions. The president stands alone against the world about drugs. This forum is great for other than those hoping for his anti-drug rulings to be dismissed. Long live The Philippines and long live anti-drugs President Duterty.

gelynch52ph
  9/26/2016 20:57 EST

I haven't read where anyone is interfering in Philippine politics. It isn't participating, or even commenting on politics to make the observation that investors are not leaving because of the drug war, as the foreign media is reporting, but because the investors fear future competition will hurt their Philippine stock, That, in my mind, means investors think there will be a positive change in the offing.

To tie that in to the OP, the more foreign investment leaves the Philippine stock market, the more it will weaken the peso, helping those of us who get paid in US $ and convert it to PhP.

Rescuer
  9/27/2016 02:02 EST

Yes, and I have only noticed positive remarks about DU30 anyway. Hopefully his visits to China, Japan, Vietnam, etc. will stimulate foreign investment and continue to keep the peso weak, so we continue getting favorable foreign currency exchange rates.

bang4dabuck
  9/27/2016 10:18 EST

I hope you are right and I was as wrong as thinking Coach Pederson was going to be my personal pin cushion all season long. Thankfully I was way off base.

Rescuer
  9/28/2016 05:33 EST

http://business.inquirer.net/215555/diokno-contradicts-duterte-claim-us-not-manipulating-peso

milloy36
  9/29/2016 04:13 EST

If I were you, I would apply at a College instead of University. College's are smaller and you will get personnel attention if you need it.

seernai
  10/7/2016 19:35 EST

There are 6 factors which affect foreign exchange rates , Differentials in inflation
Differentials in interest rates
Current account Deficits
Public Debt
Terms of Trade
Political Stability and Economic Performance

bang4dabuck
  10/8/2016 05:41 EST

I think G is saying it is a SUPPLY and DEMAND thing. Foreign money is selling the PSE i.e. selling peso denominated stocks and then changing over to another currency. Me, I'm just an innocent bystander but hoping G is correct about foreign competition, a welcome policy change.

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