Foreign Exchange Rate Hong Kong Dollar To Philippine Peso
Introduction
The Hong Kong dollar (HKD) is the official currency of Hong Kong, while the Philippine peso (PHP) is the official currency of the Philippines. As both countries engage in trade and commerce with each other, it is important to know the foreign exchange rate between these two currencies. This article will provide an overview of the exchange rate between the Hong Kong dollar and the Philippine peso.
Current Exchange Rate
As of September 2021, the foreign exchange rate between the Hong Kong dollar and the Philippine peso is approximately HKD 1 = PHP 6.59. This means that one Hong Kong dollar is equivalent to 6.59 Philippine pesos. The exchange rate is subject to change depending on various economic factors such as inflation, interest rates, and political events.
Factors Affecting Exchange Rate
Several factors can affect the exchange rate between the Hong Kong dollar and the Philippine peso. One of the most significant factors is the interest rate set by the central banks of both countries. A higher interest rate in Hong Kong can attract investors, leading to an increase in demand for Hong Kong dollars, which can lead to an increase in the exchange rate. Similarly, a higher interest rate in the Philippines can lead to an increase in demand for Philippine pesos, leading to an increase in the exchange rate.
Inflation can also affect the exchange rate. A higher inflation rate in one country can lead to a decrease in the value of its currency. For example, if the inflation rate in the Philippines is higher than that of Hong Kong, the Philippine peso may depreciate against the Hong Kong dollar, leading to a decrease in the exchange rate.
Historical Exchange Rate
Over the years, the exchange rate between the Hong Kong dollar and the Philippine peso has fluctuated. In 2011, one Hong Kong dollar was equivalent to 4.69 Philippine pesos, while in 2015, one Hong Kong dollar was equivalent to 5.88 Philippine pesos. The exchange rate reached its highest point in 2018 when one Hong Kong dollar was equivalent to 7.86 Philippine pesos. In 2020, the exchange rate was approximately HKD 1 = PHP 6.45.
Impact on Trade and Commerce
The exchange rate between the Hong Kong dollar and the Philippine peso can have a significant impact on trade and commerce between the two countries. A higher exchange rate means that it is more expensive for Filipinos to purchase goods and services from Hong Kong, which can affect demand. On the other hand, a lower exchange rate can make Philippine goods and services more affordable for Hong Kong consumers, leading to an increase in demand.
Exchange rate fluctuations can also affect businesses that engage in import and export activities. For example, if a Hong Kong-based company imports goods from the Philippines, a decrease in the exchange rate can lead to a decrease in the cost of goods. Similarly, if a Philippine-based company exports goods to Hong Kong, an increase in the exchange rate can lead to an increase in revenue.
Conclusion
The exchange rate between the Hong Kong dollar and the Philippine peso plays a crucial role in trade and commerce between the two countries. Understanding the factors that affect the exchange rate can help individuals and businesses make informed decisions when it comes to purchasing goods and services or engaging in import and export activities. It is important to keep track of the exchange rate as it is subject to change.