Recently, the peso has been recorded to hit a new record low against the USD. Simultaneously, the US Federal Reserve continued to raise interest rates and the Central Bank of the Philippines - Bangko Sentral ng Pilipinas (BSP) was not out of the influence. Is getting an online cash loan right now a wise move in light of the current volatile financial situation?
At the end of September 2022, the Philippine Peso marked a new all-time low of 58.49 against 1 USD.
According to the Central Bank of the Philippines - Bangko Sentral ng Pilipinas (BSP), the peso remains under control. The main cause of this decline is that the US Federal Reserve once again raised the fund interest rate. This was the third time with the most recent increases in June and March 2021.
Peso falls to new record low
It is mandatory that the interest rate of the Central Bank of the Philippines (BSP) increases accordingly. Senior Executive Officer of Central Bank of the Philippines, Francisco Dakila Jr. also stated that the central bank’s rate hike is mainly aimed at bringing domestic inflation back within the government's 2-4% target range, while easing pressure on the local currency.
The Philippines is not alone in the cycle of massive rate hikes this year. Central banks around the world are trying to keep up with the US while the US Federal Reserve has raised interest rates to control inflation.
The weakening of the peso against the US dollar has caused some impact on the Philippine economy. The increase in the value of the USD brings good news for Filipino workers working or settling abroad, or Filipinos whose income is in USD Because their remittance will be much higher due to the increase in the exchange rate of USD and Peso. This will encourage them to send money to relatives in their home country and increase the family’s purchasing power.
The weakening of the peso against the US dollar will benefit Filipino workers working abroad, but disadvantage domestic residents.
Contrary to the above object, the government and people living and working in the Philippines are not very happy with the news. Higher oil prices increase the government’s spending. The depreciation of the peso results in higher debt and more spending.
In the case of ordinary Filipinos, inflation means that the general price of goods and services will increase. This will have a big impact on low-to middle-income households, as they will buy less products with the same income. In the worst case scenario, this could even make Filipinos poorer when facing economic hardships.
In the context of financial volatility and high interest rates now, getting instant cash loans online is a financial solution that can be considered for Filipinos. Online loan applications are less affected than the Central Bank, so you can borrow money and get disbursed quickly with stable interest rates.
Getting instant cash loans online is a smart financial solution at this time
Getting instant cash loans online now is a financial solution for Filipinos with little credit history. You just need to apply for a loan at home with a computer or smartphone and enjoy simple requirements, short procedures, fast approval and disbursement within the same day. Especially, in the current period of fluctuations in loan interest rates, if you can find a reliable financial institution, your interest fee may be even better than the bank’s interest rate.
Among hundreds of financial institutions in the Philippines, MoneyCat is one of the reputable and safe online cash loan platforms that you may consider.
All Filipino citizens over 22 years old, working and living here, with a legal ID may easily apply for an instant cash loan online at MoneyCat. Loan limit is up to PHP 20,000 with a long payment term of up to 28 days. At MoneyCat, we assure the publicity and transparency of the interest rates and costs incurred on the loans. Especially if you are the first customer to get an instant cash loan online at MoneyCat, the interest rate on the loan will be 0%.
Above are the latest updates on the Peso and the USD. Volatile financial situation is an indisputable fact, but there are always useful solutions for your finances. contact MoneyCat if you are in need of getting an instant cash loan online right now, or any personal loan advice.
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