Us Dollar To Philippine Peso In Year 1990
The year 1990 was a significant year for the Philippine economy. It marked the beginning of a new decade, and the country was still recovering from the economic crisis of the late 1980s. During this time, the exchange rate between the US dollar and the Philippine peso was also fluctuating.
The Exchange Rate in 1990
At the start of 1990, the exchange rate between the US dollar and the Philippine peso was around 20 pesos to one US dollar. This rate remained stable for the first few months of the year.
However, as the year progressed, the exchange rate began to fluctuate. By mid-year, the exchange rate had risen to around 24 pesos to one US dollar. This increase in the exchange rate was mainly attributed to the political instability in the country.
The Philippines was going through a transition period, and the political situation was uncertain. This instability led to a decrease in foreign investments, which affected the exchange rate.
The Impact on the Economy
The fluctuation in the exchange rate had a significant impact on the Philippine economy. The increase in the exchange rate made imported goods more expensive, leading to inflation. The inflation rate reached a high of 12.5% in 1990, causing the cost of living to rise.
The high inflation rate also affected the country's exports. The increase in the exchange rate made Philippine products more expensive, making them less competitive in the global market.
The Response of the Government
The government took measures to stabilize the exchange rate and address the inflation problem. The Central Bank of the Philippines increased interest rates to attract foreign investors and stabilize the exchange rate.
The government also implemented an economic reform program that focused on reducing the budget deficit, promoting exports, and attracting foreign investments. These measures helped stabilize the economy and improve the exchange rate in the following years.
The Current Exchange Rate
Today, the exchange rate between the US dollar and Philippine peso is around 50 pesos to one US dollar. The exchange rate has fluctuated over the years, but it has remained relatively stable compared to the volatility of the past.
The Philippine economy has also improved significantly since 1990. The country has become one of the fastest-growing economies in Asia, attracting foreign investments and promoting exports. The government has implemented policies that promote economic growth and stability, leading to a more favorable exchange rate.
Conclusion
The exchange rate between the US dollar and Philippine peso in 1990 was volatile, causing inflation and affecting the country's exports. However, the government's response to stabilize the economy and promote growth has led to a more stable exchange rate today. The Philippines has come a long way since 1990 and is now one of the fastest-growing economies in Asia.