Tuesday, February 5, 2013

Philippine Peso To Appreciate To 37.5 A Dollar

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Posted on Tuesday, February 5, 2013

Philippine Peso To Appreciate To 37.5 A Dollar
Photo credit: Inquirer.net
The Philippine Peso is expected to reach 37.5 to a dollar by the end of 2013 according to investment banking giant Goldman Sachs. The said appreciation of the Philippine Peso is because of strong domestic growth and the weak US dollar as one of the big factors.

Goldman Sachs executive director for global economics, Mark Tan also added that trade flows, foreign direct investments, strong OFW remittance and “hot” money inflows will also impact the appreciation of the peso.

According to the report of Goldman Sachs titled "Asia Economics Analyst," the Philippine Peso is expected to appreciate to 35 to a dollar until 2014. By 2015 though, US greenback expects to rally because of improving US growth and Fed tightening. To the Overseas Filipino Workers like me who depends on the strong peso, don't fret so much. The peso might return to the 40-level by 2015.

Also indicated in the report, Goldman Sachs has projected Philippines' gross domestic product (GDP) of 5.5 percent in 2013, 5.5 percent in 2014, 5.6 percent in 2015 and 5.8 percent in 2016.
In 2012, the Philippines GDP growth was 6.6 percent higher than the 5.9 percentage forecast by Goldman Sachs.

The Philippines Peso closed today at 40.645 versus the US dollar.

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