Author Topic: Money exchange rates sure do change quickly huh?  (Read 6675 times)

Offline bigrod

  • Retired USAF Club Mgmt Supt, Personnel Supt & 1st Sgt
  • Administrator
  • Sr Member
  • ******
  • Posts: 1,842
Re: Money exchange rates sure do change quickly huh?
« Reply #15 on: August 09, 2014, 08:33:52 PM »
My first time in the Philippines was Jul-Aug 88 the exchange rate was 20 to 1. ;)

Chuck
Life is  to short not to live it right the first time

Offline fred

  • Sr Member +
  • Sr Member
  • ****
  • Posts: 919
Re: Money exchange rates sure do change quickly huh?
« Reply #16 on: August 09, 2014, 10:03:07 PM »
The first time I changed cash here the US $ was 8.00 and the Pound was 12.00 PHP..
That said the power of the Peso back then was so damned good locally that it was far cheaper to live here then than it is now.
The power of inflation is often more devastating than exchange rate fluctuations IMO..
Thats why my plan was always to earn the local currency in order to live here comfortably without having too worry how foreign currencies behave.
« Last Edit: August 09, 2014, 10:05:46 PM by fred »

Offline Splooge Magoo

  • Sr Member +
  • Sr Member
  • ****
  • Posts: 246
Re: Money exchange rates sure do change quickly huh?
« Reply #17 on: August 09, 2014, 11:11:57 PM »
I must have over 20 years experience in the FOREX market and the exchange rates are usually tied to interest rates. There is a portion to political stability, but lets leave that off the table.

I never believed in hedges and future contracts as I would be converting money on a monthly basis so the risks were spread out over time. We made money going up lost money on the way down, but it was not in our business model to be currency spectulators.

Based on my guess, I pretty sure that interest rates will be moving up. I have my house building money in a bond fund right now. The value of the fund is dropping as interest rates are ticking up, however the change in the forex yields more pesos. As of yesterday, with interest earned and more pesos, I coming out ahead of the game.and

This is money earmarked to spend on building, so I will try and convert as late as possible to earn more pesos.

I have a big decision on what to do with the proceeds on the sale of my current home as I need it to generate income as well as drawing down principle to live off of until I hit SS age. It has to last quite a long time. As interest rates fall, the per share price and I can buy more shares. Dividends are paid on a per share basis. In the bond fund world, as bond matures, the fund is able to buy more bonds at a cheaper price and it will then yields a higher dividend.

I'm pretty sure that I will just stick it all in the same bond fund and since I will be in it for the long haul, the income it generates will off set the decrease in price over time. The old days of the stock market and bond market moving in different directions are over so I definitely has me guessing.
Dan

Offline coleman2347

  • ole jarhead, Tacloban City, Leyte
  • Sr Member
  • ***
  • Posts: 1,160
  • Retired Marine, Retired DOD
Re: Money exchange rates sure do change quickly huh?
« Reply #18 on: August 09, 2014, 11:50:12 PM »
The first time I changed cash here the US $ was 8.00 and the Pound was 12.00 PHP..
That said the power of the Peso back then was so damned good locally that it was far cheaper to live here then than it is now.
The power of inflation is often more devastating than exchange rate fluctuations IMO..
Thats why my plan was always to earn the local currency in order to live here comfortably without having too worry how foreign currencies behave.

Fred, thats exactly why Im going the route I am.  The more (I believe) I have invested in the local economy the more it will balance out.  Also the more I have in Malines name, the less I worry about the IRS.  As a Philippine citizen she is exempt from them. 
The only thing worse than wanting to do it is not doing it

Offline suzukig1

  • Sr Member
  • ***
  • Posts: 684
Re: Money exchange rates sure do change quickly huh?
« Reply #19 on: August 10, 2014, 12:25:18 AM »


...Also the more I have in Malines name, the less I worry about the IRS.  As a Philippine citizen she is exempt from them.

Just in case others who are U.S. citizens and married to a non-U.S. citizen/resident don't know:

If you file your tax return as married filing single, then your foreign spouse would be exempt from the IRS rules/laws.

If you file your tax return as married filing jointly, then your foreign spouse would have to follow the IRS rules/laws.  If you file a joint return, the IRS considers your foreign spouse a U.S. resident for tax purposes.
« Last Edit: August 10, 2014, 12:32:01 AM by suzukig1 »

Offline coleman2347

  • ole jarhead, Tacloban City, Leyte
  • Sr Member
  • ***
  • Posts: 1,160
  • Retired Marine, Retired DOD
Re: Money exchange rates sure do change quickly huh?
« Reply #20 on: August 10, 2014, 03:33:41 AM »
suzukig1, I always file single...thanks for that info...didnt know it
The only thing worse than wanting to do it is not doing it

Offline Steve & Myrlita

  • Administrator
  • Sr Member
  • ******
  • Posts: 1,291
  • Myrlita & I and all of our grandchildren.
Re: Money exchange rates sure do change quickly huh?
« Reply #21 on: August 10, 2014, 03:58:05 AM »
I did a little research on the rates then and now. I looked at the 3 US exchanges when it was 56:1. The US exchanges were lower than they are now. The current exchanges are hitting the highest numbers in years but we can't get over 43-45:1. This very much looks like RP govt currency manipulation to me IMHO. God Bless......
Thank you...God Bless...
Bro Steve & Sis Myrlita
Bacolod City, PH
***********************
*** RIP MY FRIEND LEE ***
***       RIP DON H        ***
***********************