Applied Economics

The Philippine Peso and

the Foreign Currency

Grade 12 – Determination (ABM)

Bernales, Hidee Khay

Conchas, Marjorie
Doyon, Ian Robert
Hermosilla, Aila Marie
Juare, Maxine Joy
Navarro, John Andre

Submitted to:
Ms. Thesha Mae Godoy

January 31, 2020

OBJECTIVES:

 Enumerate the different types of Filipino peso bill;

 Analyze the impact of money and foreign currency in foreign exchange in our
economy

The Philippine Peso and the Foreign Currency

The Filipino Peso

 The Philippine peso (Filipino: piso; sign: ₱; code: PHP) is the official currency of
the Philippines. It is subdivided into 100 centavos (Filipino: sentimo).

 The peso is usually denoted by the symbol "₱".

 The Philippine coins and banknotes are minted and printed at the Security Plant
Complex of the Bangko Sentral ng Pilipinas (Central Bank of the Philippines)
in Quezon City

What is Currency?
 In economics, currency is a generally accepted medium of exchange.

 An exchange rate is the rate at which one currency may be converted into
another, also called rate of exchange of foreign exchange rate or currency
exchange rate.

 The foreign exchange rate is simply the price of one currency in terms of another,
or how much one currency can be exchanged for another, in the same way that
the price of a good is determined by how much money can be exchanged for it.

Money Changing
 The main function of a foreign exchange department is to make money for the
bank by speculating on whether a particular currency will rise or fall against
another. Banks compete fiercely with each other using experienced market
traders and millions of dollars or currency equivalents are exchanged daily.

Foreign exchange market

 The foreign exchange market (forex, FX, or currency market) is a form
of exchange for the global decentralized trading of international currencies.

 Foreign exchange transaction is a type of currency transaction that involves two

countries. Generally, a foreign exchange transaction involves conversion of
currency of one country with that of another. The conversion of currency in a
foreign exchange transaction can be performed through :
1. buying or selling of goods and services on credit;
2. borrowing or lending funds.

What Are the Functions of Foreign Currency Exchange Markets?

Primary Function
 The primary function of foreign currency exchange markets is to convert the
currency of one country into another currency
International Transactions
 Foreign currency exchange markets serve to facilitate international financial
transactions.

Currency Value

 The value of a country's currency can influence international trade, consumers'

purchasing power and inflation.

Investment
 Fund managers and investment professionals use the foreign currency exchange
market to help diversify their portfolios and potentially increase their returns.

Loss Protection
 International companies that work in multiple countries are subject to gains and
losses based on exchange rate fluctuations.

Forex Trading

 Forex, the word, means FOReign EXchange market. This is an international

market where the buying and selling of money is done freely and 24 hours a day.
All forex trading involve the buying of one currency and the selling of another,
simultaneously. Currency quotes are given as exchange rates; that is, the value
of one currency relative to another. The relative supply and demand of both
currencies will determine the value of the exchange rate.

 The trading of foreign currency is the exchange of money issued in one country
for money issued in another. Foreign currency trading takes place in the highly-
solvent foreign exchange market. Currencies are traded for one another at
exchange rates, which are relative prices determined by market supply and
demand.

Here are some simple tips that will help you increase your profit potential and
prevent you from losing money.

1. Select your first broker

2. Get a simple method you understand
3. Trade the big trends and not trade frequently
4. Work smart and not hard
5. The formula to success
Using Simple Method + With Discipline + Control Risks = Forex Trading
Success

Tips & Warnings

*Document your training objectives. This can facilitate the process for everyone.

*Create and prioritize an outline of the demos and videos to use as a checklist for each
handler.

*Let handlers know it takes time to master the forex system to keep them from being
discouraged.

*Foreign exchange trading is a high-risk activity and should not be taken lightly.
*Monitor each handler individually, be available for one-on-one interaction and
encourage questions for the best training results.

What is foreign exchange risk?

 Exchange risk is simple in concept: a potential gain or loss that occurs as a result
of an exchange rate change.

List of Currencies
Aside from the US Dollar, BPI Forex Corporation transacts in the following
currencies:.

 Australian Dollar
 Korean Won
 Bahrain Dinar
 British Pound
 Brunei Dollar
 Canadian Dollar
 Chinese Yuan
 Euro
 Hong Kong Dollar
 Indonesian Rupiah
 Japanese Yen
 Malaysian Ringgit
 New Zealand Dollars
 Saudi Riyal
 Singapore Dollar
 Swedish Kroner
 Swiss Franc
 Taiwan Dollars
 Thailand Baht

BPI FOREIGN EXCHANGE

Reference:
 Tullao Jr., Tereso S. Applied
Economics For A Progressive
Philippines. Phoenix Publishing
House; 927 Quezon Ave.,
Quezon City. 2016
 Pagoso, Cristobal M. Philippine
Economics (Macro Approach).
NELSON PUBLICATION;
Marimar Village Paranaque City.
2003
 Carnaje, Gideon P. Applied
Economics. Vibal Group Inc,
Araneta Avenue, Quezon City.
2016