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We are currently in a global economy where ordinary income-earning Filipinos can earn in dollars. Dollars are readily converted into pesos almost anywhere. Majority of Filipino families are dependent, one way or another, on a member working overseas earning in dollars. Thus, fluctuation of the FOREX has become so important in the lives of ordinary Filipinos. Price increases, for instance of oil and rice, can be mitigated by a stronger peso against the dollar.

FOREX and domestic price increases are the faces of inflation. The prices of what we buy therefore increases or decreases as the FOREX fluctuates. Most of the items we buy have some kind of foreign component. Some part of most locally manufactured items would be imported, and sad to say, we have more imported items available now because free trade has been allowed even more.

FOREX fluctuates because of supply and demand. When there are more dollars available, the demand for pesos goes up, and the peso becomes stronger. And we can exchange our dollars for fewer pesos. This usually happens when foreign investments and exporters’ foreign earnings are remitted into the country or when our OFWs remit their earnings at the same time, usually during the Christmas/Vacation season.

On the other hand, dollars are in demand usually when oil companies and other importers have to pay for their imports. It is during these times that we can get more pesos for our dollars.

FRANCISCO J. COLAYCO is an entrepreneur, a venture developer and financial advisor. He has over 40 years of experience that covers service contracting in the Middle East, manufacturing, trading construction, shipbuilding, management consulting, banking and financial services. He is the Chairman of the Colayco Foundation for Education (CFE) and the author of bestsellers: Wealth Within Your Reach (2004 National Book Award for Business and Economics), Making Your Money Work (Nominated in 2005, National Book Awards Business and Economics), Pera Palaguin Workbook and Money for Kids. The books are available at National Bookstore, most other bookstores or directly from CFE. He joins our website blog to share with ordinary income earners, Overseas Filipino Workers (OFW) and students the simple principles to "Save what you earn and grow what you save." CFE conducts talks, seminars, and workshops. “Managing Personal Finances For The Future” a seminar-workshop developed in partnership with the Ateneo Graduate School of Business, Center for Continuing Education. June 21, 2008, Saturday, 9:00 am to 6:00 pm. For registration and inquiries, please call Marleth Calanog at 830-2050. CFE is also the producer of the PISObilities DVD series, available at your favorite audio-video shops in May 2008. Learn more about the advocacy at http://www.colaycofoundation.com/, email info@colaycofoundation.com, via SMS +63917-8537333 or through (632)637-3741.