Philippine Peso To Us Dollar Exchange Rate In 1968
Introduction
The Philippine peso is the official currency of the Philippines. In 1968, the peso was pegged to the US dollar at an exchange rate of 3.90 Philippine pesos to one US dollar. This means that one US dollar was equal to 3.90 Philippine pesos. The exchange rate was fixed by the Philippine government to stabilize the economy and promote international trade.
The Philippine Economy in 1968
In 1968, the Philippine economy was growing rapidly. The country had a Gross Domestic Product (GDP) of $8.4 billion, and its annual growth rate was 6.8%. The government was investing heavily in infrastructure projects, such as roads, bridges, and airports, to support economic growth. The country was also exporting products, such as sugar, coconut oil, and textiles, to other countries.
The US Economy in 1968
The US economy was also growing in 1968. The country had a GDP of $4.6 trillion, and its annual growth rate was 4.9%. The US was a major trading partner of the Philippines, and many Philippine products were exported to the US. The US was also investing in infrastructure projects, such as highways and airports, to support economic growth.
The Impact of the Exchange Rate on Trade
The exchange rate between the Philippine peso and the US dollar had a significant impact on trade between the two countries. When the exchange rate was fixed at 3.90 Philippine pesos to one US dollar, Philippine products became more expensive for US buyers. This made it harder for Philippine exporters to compete with other countries that had weaker currencies. However, it also made US products cheaper for Philippine buyers, which helped to increase US exports to the Philippines.
The Impact of the Exchange Rate on the Philippine Economy
The exchange rate also had an impact on the Philippine economy. When the exchange rate was fixed, the Philippine government had to keep a large amount of US dollars in reserve to maintain the exchange rate. This reduced the amount of Philippine pesos in circulation, which made it harder for Philippine businesses and consumers to borrow money. It also made it harder for the government to invest in social programs, such as education and healthcare.
The Devaluation of the Philippine Peso
In 1970, the Philippine government decided to devalue the peso by 25%. This meant that the exchange rate was changed from 3.90 Philippine pesos to one US dollar to 5.00 Philippine pesos to one US dollar. The devaluation was done to make Philippine products more competitive in international markets and to increase the amount of Philippine pesos in circulation. However, it also made imports more expensive for Philippine consumers, which caused inflation to rise.
The Impact of the Devaluation on the Philippine Economy
The devaluation had a mixed impact on the Philippine economy. On the one hand, it made Philippine products more competitive in international markets, which helped to increase exports. It also made it easier for Philippine businesses and consumers to borrow money. On the other hand, it made imports more expensive, which caused inflation to rise. This made it harder for Philippine consumers to afford basic goods, such as food and clothing.
Conclusion
The exchange rate between the Philippine peso and the US dollar has had a significant impact on the Philippine economy over the years. In 1968, the exchange rate was fixed at 3.90 Philippine pesos to one US dollar, which helped to stabilize the economy and promote international trade. However, it also had negative impacts on Philippine businesses and consumers. The devaluation of the peso in 1970 helped to make Philippine products more competitive in international markets, but it also caused inflation to rise. Today, the exchange rate between the Philippine peso and the US dollar continues to fluctuate, and its impact on the Philippine economy remains a topic of debate.