Thursday, October 02, 2008

Watch out Philippines

Of the more than 14B dollars remitted by OFWs in 2007, around 7.5B dollars (50%) came from the USA. So?

On the news today:

The amount of money sent home monthly by Mexicans living in the United States dropped to its lowest level on record in August, Mexico's central bank reported Wednesday. Mexicans sent home $1.9 billion in August, a more than 12 percent drop compared with the same month last year.

A drop of 20% is expected for the year 2008.

The prolonged deceleration of economic activity in the United States has adversely affected the opportunities for employment in that country and, consequently, those of the Mexican migrants.


Would remittances from OFWs in the USA suffer the same fate? What about remittances from Italy or Europe? Do you have any doubts we are going to be an exception? hehehe.

And our government just announced that they are expecting a deficit of over 1 billion dollars this year, and is planning to go to the debt market to cover the deficit, hehehe. Good timing, indeed.


So? Do you smell something out of the Peso exchange rates by December? And next year, what?

All bets are off for now.