Wednesday, December 5, 2012

Big Pussy Cat to Emerging Tiger - Philippines

The Philippines peso (PHP) is hitting close to a 5 year high in valuation when compared to the US-dollar (USD). On December 5, 2012, the peso closed at 40.85 PHP. The peso is now anchored by low inflation running at 2.8% (November 2012), a country very rich in natural resources (energy and mineral resources) and spearheaded by very competent political management under the leadership of President Aquino.

This is quite a currency appreciation move by the PHP. In August 2009, the peso was trading at 48.25 PHP to the USD, a gain of almost 16% when compared to today's valuation.

Keep your eye on the Philippines. Although vulnerable to typhoons as witnessed with yesterday's tragic storm strike on Eastern Mindanao Island (southern Philippines), the country is vibrant, economic growth is strong. Expect to see the political leaders to continue to invest in energy infrastructure, roads, health & education whilst maintaining a balance with the environment and industry growth in mining, energy and manufacturing sectors.

This time, the peso may very well continue to appreciate even further neglecting previous cyclical trading cycles. A more prosperous Philippines in the years is inevitable, indeed, an emerging tiger rooted in the country's rich natural resources.

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