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In 2012 the Philippine economy remained resilient, as seen in robust macroeconomic fundamentals, despite external threats from a growing recession in the United States and the European region.

During the 3rd quarter of 2012, the Philippines posted a high 7.1% growth in its Gross Domestic Product (GDP), making the country the fastest growing economy in Southeast Asia. The GDP is a computation of the market value of all final goods and services produced within a country during a certain period, and is a measure of overall economic activity.

As for the stock market, the performance of the Philippine Stock Exchange index (PSEi) in 2012 landed the country a spot in the Top 10 Best Performing Stock Markets worldwide, growing 32.95% from January to December 2012.

It’s rosy news once more when it comes to the performance of the Philippine Peso last year. The country’s currency is the best performing currency in Southeast Asia, rising more than 6.5% versus the US Dollar.

In the whole of Asia, the Philippine Peso ranks second to the South Korean Won in terms of appreciation, with the latter rising by 8.0% last year.

On the last trading of 2012, the Philippine Peso closed at P41.05 to the US dollar. During the first trading day in January 2, 2013, the Peso again appreciated and closed at P40.86 against the greenback.

Analysts expect the Philippine Peso to reach the P39.00 level in 2013.

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The Peso appreciation is due mainly to growing remittances of Overseas Filipino Workers (OFW) and the influx of investments from investors moving out of countries with recession and credit rating downgrades.

The Bangko Sentral ng Pilipinas (Central Bank) forecasts OFW remittances to reach P21.11 billion in 2012, a 5% increase from last year’s total remittances of P20.1 billion. The same 5% growth in remittances is expected in 2013, further fueling an appreciation of the Peso versus the dollar.

A summary of the year-on-year performance of various Asian currencies against the US Dollar is shown below.

2012 Asian Currencies vs. US Dollar

  Currency Symbol Jan. 3, 2013 USD Exchange Rate Year-on-Year Appreciation (Depreciation)
1 Korean Won KRW 1,063.30 7.97%
2 Philippine Peso PHP 40.86 6.50%
3 Singapore Dollar SGD 1.2205 6.12%
4 Brunei Dollar BND 1.2215 5.79%
5 Thai Baht THB 30.315 4.49%
6 Malaysian Ringgit MYR 3.0355 4.24%
7 Taiwan Dollar TWD 29.04 4.00%
8 Chinese Yuan Renminbi CNY 6.235 1.19%
9 Vietnamese Dong VND 20820 0.86%
10 Hong Kong Dollar HKD 7.7508 0.25%
11 Australian Dollar AUD 1.0382 -1.27%
12 Indian Rupee INR 54.36 -2.57%
13 New Zealand Dollar NZD 0.825 -5.76%
14 Pakistan Rupee PKR 97.42 -8.61%
15 Indonesian Rupiah IDR 9,650.00 -8.98%
16 Japanese Yen JPY 87.347 -12.47%

The Top 10 best performing currencies around the world is as follows.

2012 Top 10 World Currencies

  Currency Symbol Jan. 3, 2013 USD Exchange Rate Year-on-Year Appreciation
1 Polish Zloty PLN 3.0838 9.30%
2 Mexican Peso MXN 12.7437 8.97%
3 Colombian Peso COP 1,772.00 8.57%
4 Chilean Peso CLP 474.95 8.55%
5 South Korean Won KRW 1,063.30 7.97%
6 Hungarian Forint HUF 220.49 7.42%
7 Norwegian Krone NOK 5.5461 7.41%
8 Turkish Lira TRY 1.7787 7.36%
9 Philippine Peso PHP 40.86 6.50%
10 Singapore Dollar SGD 1.2205 6.12%

The 10 currencies that depreciated the most versus the US Dollar is summarized below.

2012 Worst 10 World Currencies

  Currency Symbol Jan. 3, 2013 USD Exchange Rate Year-on-Year (Depreciation)
1 Malawian Kwacha MWK 334.695 -104.08%
2 Sudanese Pound SDG 4.4125 -64.65%
3 Syrian Pound SYP 71 -31.14%
4 Ghanaian Cedi GHS 1.9085 -17.81%
5 Afghan Afghani AFN 50.98 -17.63%
6 Gambian Dalasi GMD 34.125 -15.38%
7 Burundian Franc BIF 1530 -15.12%
8 Argentinean Peso ARS 4.925 -14.53%
9 Japanese Yen JPY 87.347 -12.47%
10 Sri Lankan Rupee LKR 127.35 -11.96%

Topic Summary Keywords:

philippine economy, philippine economy 2012, best performing currency in asia



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