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02.10.2023

3 Reasons why Canadian dollar to Philippine peso exchange rate is going up/down

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Canadian dollar to Philippine peso exchange rate is going up/down

For overseas Filipinos working in Canada, rapid fluctuation of the Canadian dollar to Philippine peso exchange rates is a big concern, especially during peak seasons. In this article, Smiles Mobile Remittance Canada will point out 3 reasons for the hike and drop of Canadian dollar to Philippine peso exchange rate.

Understanding the currency’s nature and regulators’ policies

Before we begin, we must acknowledge that a currency value is basically set by market trends. The more people want to buy certain goods or services a country is selling, the higher the value of their currency.

In the case of the Canadian dollar, the Bank of Canada does not intervene to support its value. They let the market set the value of their currency, and they let the Canadian dollar float. Floating its currency allows Canada to cope well with the ups and downs of the economy.

In the Philippines, however, the Bangko Sentral ng Pilipinas (BSP) does not predetermine a currency’s value that it will maintain. Instead, the exchange rate fluctuates in response to economic developments.

Reason 1: Canadian dollar to Philippine peso exchange rate (CAD to PHP) amid global crisis and conflicts

The COVID-19 pandemic and the war in Ukraine have made an impact on the conversion of the Canadian dollar to the Philippine peso as well as other currencies. Many are experiencing the prices of oil and commodities going up.

Canada’s economy depends more on exports of oil and commodities. If exporting prices fall, the value of the currency also falls, and the cost of exported goods becomes cheaper and creates more buyers. If the prices rise, the currency of the Canadian dollar also goes up and makes Canada’s exports more expensive and, therefore, increases returns.

Canada’s economy benefits in both scenarios because investments and jobs will just shift from declining sectors to growing sectors, which helps balance the economy.

Reason 2: Relation of the Canadian dollar to the Philippine peso in terms of trading

In contrast to Canada, the Philippines relies heavily on imported goods. A weakening peso means higher prices for commodities such as gasoline and agricultural products. As a result, the country will need more Philippine pesos to pay other countries for imported goods, and they will also need to pay more for imported fuel.

Unlike the export-oriented Canadian economy, the Philippines is still considered an importer of commodities, and therefore has more demand for foreign currency. This makes the value of the Philippine peso even weaker. This is the reason why more Filipinos have always wanted to work and live in Canada, as immigrants, workers, or even students. Their number one reason is based on the all-time high exchange rate of the Canadian dollar to the Philippine peso.

Want to send money to the Philippines from Canada with the best FX rates? Send with Smiles Mobile Remittance.

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Reason 3: Effects of government debt on the rate of Canadian dollar to Philippine peso

The Philippine peso has been suffering for the longest time. When the US Federal Reserve increases its interest rate to manage inflation, it hits hard on the Philippine peso because the foreign debt is denominated by US dollars.

With the strong impact of the Canadian Dollar on the Philippine peso, remittances from overseas Filipino workers not only in Canada but all over the world always help the Philippines weather any global economic crisis. The high exchange rate of the Canadian dollar over the Philippine peso increases the value of remittances coming from Canada. However,the pandemic and the war in Ukraine resulted in higher costs of essential goods and commodities which almost offset the result in the Philippine economy.

On the bright side, Japan’s number one mobile remittance has expanded in Canada. The Smiles Mobile Remittance app is a money transfer service conceptualized by Filipinos for Filipinos. More than ever, the global community needs more value for their hard-earned money, and that’s what Smiles Mobile Remittance app can offer. Smiles strived to provide “Everyday Great Rates” (meaning that the Canadian Dollar to the Philippine Peso exchange rate is higher), affordable fees, plus Smiles Loyalty Points that customers can use to reduce or zero out their remittance fees.

You can check Smiles Remittance’s CAD to PHP exchange rate with the tool below:

Related articles

Exchange rate CAD to PHP | Canadian dollar to Philippine peso today

Top 5 Services to Send Money to the Philippines from Canada

The Secret of Everyday Great Rates by Smiles Mobile Remittance

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