Salary in US Dollars

If you ever given the chance to go overseas to work as an OFW, I suggest that always ask for a salary paid in US Dollars and not on the local currency. This will keep you in a much safer financial status when sending back your remittance to the Philippines regardless of local currency rates.

The reckoning currency of the Philippine peso and all other currencies is the US dollar. If your salary is in US dollar and not in other local currencies then the effect of forex fluctuation on you is lesser.

Let us compare the forex in 01 August 2008 before the meltdown to the forex today 14 January 2009. Assuming that you were offered a USD 1,000 equivalent in local currency before the economic meltdown.

Change in Local Currencies Exchange Rates
Country 01 Aug 2008 14 Jan 2009 % Reduction
Saudi Arabia 3.74830 3.74865 0.01% ($0.09)
Canada 1.02341 1.02341 16.27% ($162.66)
Australia 1.48728 1.05942 28.77% ($287.68)
New Zealand 1.78779 1.36236 23.80% ($237.96)
Taiwan 33.24049 30.681 7.70%    ($77.00)

In the above comparison, you are most affected when you are working in Australia. A US$1,000 salary pre-melt down will now only be US$712 at this time.

You are lucky if you are working in Saudi Arabia as the SAR : USD forex is negligible.

About the Author

Ver Pangonilo
A Filipino Engineer, Registered Professional Engineer of Queensland (RPEQ) - Australia and Professional Electrical Engineer (PEE) - Philippines with extensive experience in concept select, front-end engineering, HV & LV detail design, construction and commissioning of Hazardous and Non-Hazardous Area electrical installations in water and waste water pipeline and pumping facilities, offshore platforms, hydrocarbon process plants and pipelines including related facilities. Hazardous area classification and design certification (UEENEEM015B, UEENEEM016B, UEENEEM017B).
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