Philippine Peso Exchange Rate
Ah, the Philippines: dominating world leader (if you’re ranking by coconut production and number of megamalls).
What influences the USD/PHP exchange rate?
Because of the substantial economic growth that has been occurring in the Philippines in recent years, overseas investors and traders have been attracted to the area and the Philippine peso (PHP). In recent years, the USD has climbed steadily against the PHP nearly achieving a 10 year high at the end of 2016.
As of May 2016, the Philippines elected a new and controversial president, Rodrigo Duterte, whose outlandish statements and brutal drug war have already spooked investors and strained foreign relations.1 How this will affect the USD/PHP exchange rate depends on whether Duterte pursues isolationist foreign policy or takes action to intervene in the current free-floating monetary policy.
According to Bloomberg, “Philippine officials say the nation’s fundamentals are strong and a weaker currency will boost the value of two key drivers of growth: money repatriated by Filipinos working abroad, and outsourcing revenue.”
Remittances account for almost ⅓ of GDP in the Philippines, and comparatively cheap labour costs have fueled an outsourcing boom that has offset a recent drop in exports.2 With the Philippine economy so dependent on the value of its currency, the USD/PHP exchange rate may depend on how much the Philippine government intervenes to maintain the currency within a particular range. Learn more about what influences the value of the U.S. dollar here.
“The United States and the Philippines have a strong trade and investment relationship, with over $25 billion in goods and services traded.” – U.S. Department of State2
The Philippines experienced accelerated economic growth that averaged 6% each year from 2011-2015. Despite that growth, unemployment was still high at around 6.5%, with underemployment around 18-19%.3
In 2015, the Philippines was ranked 39th in the world in terms of GDP, while the United States was ranked 1st.4
The US is the Philippines’ 3rd biggest trading partner, and the U.S. is also one of the country’s top foreign investors.5
Top exports from the U.S. to the Philippines include: machinery, wheat, aircraft, and agricultural products, as well as private commercial services.5
Imports from the Philippines to the U.S. include services, machinery, apparel, and oils, as well as agricultural products.5
Whether you’re planning a trip to the Philippines or sending money back home to friends and family, OFX can help you save on your international money transfers. If you need to make a payment to the Philippines, use OFX so you don’t get stung by high bank margins and fees. Register today to get access to our low rates and personalized service.
Currency Name: Philippine Peso
Currency Code: PHP
Currency Symbol: ₱
Central Bank: Bangko Sentral ng Pilipinas
Countries Used In: Philippines
Major Unit: One Piso
Minor Unit: One Sentimo
Note Denominations: 5, 10, 20, 50, 100, 200, 500, 1,000 piso
Coin Denominations: 1, 5, 10, 25 sentimo; 1, 5, 10 piso
OFX fees not included in the conversion amounts shown above.
*Occasionally, third-party banks may deduct a fee from your transfer before paying your recipient. This fee may vary and OFX receives no portion of it.
CCY Worldwide Delivery Times
Some destinations for this currency include:
*Delivery times are indicative and measured in business days from the time your funds are received by OFX.