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From Angel: Thank you for dropping by this site. Glad to be of help.

This may be a chicken and egg question. Now that I think about it, it’s not too clear which comes about as a result of which. An improved credit rating or an improved credit rating outlook may make investors more confident in the Philippines, so more investments may come in. More dollars flowing in increases the supply of dollars and when there is more supply, the value of course, goes down. Then again, I read in some articles that one of the reasons for the improvement in outlook was the strengthening of the peso. You are right though. Improved credit ratings or credit rating outlooks don’t mean much — unless people feel it personally. Here’s to that day.

Does improved credit ratings mean a stronger peso? I was at the money exchange today to send some money to the wife (it’s that time of the month when her memory improves while I suffer a bout of amnesia!) and I heard my fellow OFWs grumbling that their dinars aren’t worth that much any longer with the peso hovering just below the P50/- per dollar rate. Whatever benefits this improved rate brings, I hope it trickles down to the poorest of the poor in our country and not just bloat the already-bulging pockets of the Taipans and Ayalas.

Regards,
Al