Is the Philippine Peso Backed by Gold?



When local news networks posted an article in 2020 that the central bank was going to start actively trading its gold reserves, I saw someone in the comments section ask if the Philippine peso had now been turned into a fiat currency.

I was very amused because the entire world has been running on fiat currency since the 1970s when the US went off the gold standard.

But I really should not have been surprised. When I was in high school, a classmate of mine asked our economics teacher why we couldn't just print money. Our teacher answered that we needed gold to do so. At that time, I had already read Robert Kiyosaki's Rich Dad, Poor Dad so I knew that her information was outdated. She was probably twice my age back then so I'm pretty sure we were already off the gold standard when she attended college.

A gold standard means that currency is either convertible to gold or can only be issued based on a country's gold reserves.

Prior to the 1970s, the Philippines was on a dollar standard (meaning we could issue pesos based on the amount of dollars we had) and the dollar was convertible into gold.

Can the Philippines pull off a gold standard?

According to BSP's latest report, we had 5.14 million fine troy ounces of gold reserves as of March 31, 2023. Meanwhile the broad money (M3) supply stood at 16.2 trillion pesos. This means that if the peso were convertible to gold, an ounce of gold would be worth millions of pesos. 


Is the ASEAN getting ready to go back to a gold standard?

Gold standards work best when each country has the same amount of gold in relation to their GDP. In fact, a report suggests that central banks within the European Union have been buying and selling gold among themselves in a bid to equalize their gold reserves in proportion to their GDP in preparation for a return to a gold standard.

Is ASEAN doing the same? 

In December 2014, three thousand five hundred metric tons of gold bars were allegedly shipped from the Philippines to Thailand.

Are we selling our gold reserves to our neighbors in preparation for a return to a gold standard?

While most countries were aggressively adding to their stockpile, this article reveals that we reduced our gold reserves by 18% since 2013.

Comments

Post a Comment

Popular posts from this blog

How to Register to DITO Promos Thru Text

Image
I was scratching my head trying to figure out how to register to DITO promos without going through their app. I don't know why but apparently DITO's app needs internet connection to be accessed. How very counterintuitive! Imagine, I was about to register to a Smart Promo just to access their app and subscribe to a promo! Anyway, thank goodness I was able to find a way to subscribe to DITO promos without using their app. Here is how you can register to DITO promos thru text: 1. Text HELP or 0000 to 185. This is free of charge. 2. You will receive a reply with the menu. Choose 'Buy Promo'. 3. Choose your desired promo and confirm your purchase. That's it! Now you just have to wait for a text confirmation or try to check if you can now access the internet. Hope this helps you out!
READ MORE

Cuando by Comic Relief song lyrics

Image
I could describe Comic Relief in two words: cutting edge. Gone now are the times when all the Chabacano songs that we hear were about the place itself. We finally heard a pop song in Chabacano. What's great is that it's not just any Chabacano pop song, it's a good one too. It doesn't sound corny like the other songs that we hear and it's very modernized so the youth could very much relate to it. Pirmi kita ta oi: bueno pa el maga Bisaya, bale el maga de ila cancion. Pues, ahora tiene ya tambien kita bale canciones en Chabacano. Cuando Lyrics by Comic Relief Que tal man tu ahora? Donde anda? Libre ba tu, puede yo lleva pasea Pasencia conmigo Si bodi man yo Pero precura yo dale contigo el todo Hinde ba tu ta sinti? De jalo lang que sufri Ta canta este cancion Con todo mi corazon pati mi pensamiento Cuando, cuando contesta? Pirmi yo ta resa Que kita dos ay queda Tu dulce palabra Pirmi yo ta espera Cuando tu contesta Si hinde ahora Cunda
READ MORE

Zamboanga Hermosa song lyrics

Image
Zamboanga hermosa, preciosa perlita Orgullo de Mindanao Tus bellas dalagas son las que hermosean Tu deliciosa ciudad. Flores y amores que adornan tu jardin Eres la imagen del bello eden Zamboanga hermosa, preciosa perlita Orgullo de Mindanao. Here is a YouTube video of Zamboanga Hermosa by Major Chords (03:30 mark). Zamboanga Hermosa was written by Vicente Orendain during the early part of the 20th century. It's all about the Chabacano de Zamboanga. Bien Chabacano is the first and only blog designed for Chabacano language enthusiasts which discusses and analyzes Chabacano word origins,Chabacano grammar and vocabulary, and so much more! Click here to visit Bien Chabacano now.
READ MORE