With the strong impact of the Canadian Dollar on the Philippine peso, remittances from overseas Filipino workers not only in Canada but all over the world always help the Philippines weather any global economic crisis. When the US Federal Reserve increases its interest rate to manage inflation, it hits hard on the Philippine peso because the foreign debt is denominated by US dollars. The Philippine peso has been suffering for the longest time. Want to send money to the Philippines from Canada with the best FX rates? Send with Smiles Mobile Remittance.ĭownload Smiles Mobile Remittance app/ Reason 3: Effects of government debt on the rate of Canadian dollar to Philippine peso Their number one reason is based on the all-time high exchange rate of the Canadian dollar to the Philippine peso. This is the reason why more Filipinos have always wanted to work and live in Canada, as immigrants, workers, or even students. This makes the value of the Philippine peso even weaker. Unlike the export-oriented Canadian economy, the Philippines is still considered an importer of commodities, and therefore has more demand for foreign currency. As a result, the country will need more Philippine pesos to pay other countries for imported goods, and they will also need to pay more for imported fuel. A weakening peso means higher prices for commodities such as gasoline and agricultural products. In contrast to Canada, the Philippines relies heavily on imported goods. Reason 2: Relation of the Canadian dollar to the Philippine peso in terms of trading If the prices rise, the currency of the Canadian dollar also goes up and makes Canada’s exports more expensive and, therefore, increases returns.Ĭanada’s economy benefits in both scenarios because investments and jobs will just shift from declining sectors to growing sectors, which helps balance the economy. If exporting prices fall, the value of the currency also falls, and the cost of exported goods becomes cheaper and creates more buyers. ![]() Many are experiencing the prices of oil and commodities going up.Ĭanada’s economy depends more on exports of oil and commodities. The COVID-19 pandemic and the war in Ukraine have made an impact on the conversion of the Canadian dollar to the Philippine peso as well as other currencies. Reason 1: Canadian dollar to Philippine peso exchange rate (CAD to PHP) amid global crisis and conflicts Instead, the exchange rate fluctuates in response to economic developments. In the Philippines, however, the Bangko Sentral ng Pilipinas (BSP) does not predetermine a currency’s value that it will maintain. ![]() Floating its currency allows Canada to cope well with the ups and downs of the economy. They let the market set the value of their currency, and they let the Canadian dollar float. In the case of the Canadian dollar, the Bank of Canada does not intervene to support its value. The more people want to buy certain goods or services a country is selling, the higher the value of their currency. Understanding the currency’s nature and regulators’ policiesīefore we begin, we must acknowledge that a currency value is basically set by market trends. In this article, Smiles Mobile Remittance Canada will point out 3 reasons for the hike and drop of Canadian dollar to Philippine peso exchange rate. For overseas Filipinos working in Canada, rapid fluctuation of the Canadian dollar to Philippine peso exchange rates is a big concern, especially during peak seasons.
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