Monday, December 10, 2007

Forex Update, and the Economy

Mostly from PDI:


The peso opened trading at 41.69 and close at the intra-day high of 41.58 against the greenback. The peso is now trading at its strongest level since hitting 41.56 to the dollar on May 15, 2000.

The central bank, Bangko Sentral ng Pilipinas (BSP), “is trying to temper the peso’s appreciation by buying dollars, but it’s really a strong season for OFW inflows,” a currency trader said.


Filipinos shunning imports?


The lower-than-expected rise in imports came about despite the 7.1-percent growth of the overall economy in the first three quarters, beating most expectations. The slow growth in imports also came about despite the accelerated rise in consumer spending.

Lower imports, Higher spending, Weaker Dollar (which means imported good are cheaper?), what's up? I can see so many Made in China in the market? The possibilities are as follows:

1. The growth statistics by the government should be checked.
2. The total imported goods are cheaper i.e. mostly from China, hence the lower valuation. Higher spending? Mark up of importers must be high (they should be charged with higher taxes).
3. People are patronizing, more and more, locally produced products, than in previous years. I hope this checks out with the production levels of our local industries, because if they dont, then back to number one.

Which is which? You tell me.