With the Peso depreciating against the U.S. Dollar, will Filipinos be more likely to send more money home?
What’s the best time to send money to your loved ones in the Philippines?
Now would be good. That’s what Xoom discovered as the result of its survey of the global money transfer company’s customers, conducted in January 2014.
We see that 40 percent of the respondents said they plan to send more money home now that the peso is depreciating.
It’s about timing and money. The Philippine peso is depreciating against the U.S. dollar and has reached the 45 peso to the dollar level, the first time in four years it has hit that mark (as of February 11, 2014).
We know that when the peso depreciates, money transfer recipients in the Philippines benefit by getting more pesos for every dollar sent to them.
Why is the peso weakening against the dollar? There are several factors, including the uncertainty about the speed and the duration of the U.S. Federal Reserve narrowing its stimulus program. But there is something that is certain: right now is a really good time to send money back home to the Philippines because it’s favorable financially for both the sender and the recipient ($1.00 U.S. = 45 PHP).
“I encourage our kababayans to send money now while the exchange rates are favorable to them,” said Pia Guter, Xoom’s Director of Marketing for the Philippines. “It’s fast and convenient to send with Xoom.com and you can send up to $2,999 for only $4.99.”