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ABM - AE12 - 006 - The Philippine Peso and The Foreign Currency
ABM - AE12 - 006 - The Philippine Peso and The Foreign Currency
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
Objectives
At the end of the lesson, the learner is expected
to:
enumerate the different types of Filipino peso
bill;
analyze the impact of money and foreign
currency in foreign exchange in our economy
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
Start up:
Watch a video entitled “Usapang Pera: Noon at
Ngayon”.
https://www.youtube.com/watch?v=28j91QiNq
1o
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
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.
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
What is Currency?
• 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.
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
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.
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
Primary Function
The primary function of foreign
currency exchange markets is to
convert the currency of one
country into another currency.
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
International Transactions
Foreign currency exchange
markets serve to facilitate
international financial
transactions.
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
Currency Value
The value of a country's currency
can influence international trade,
consumers' purchasing power
and inflation.
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
Investment
Fund managers and investment
professionals use the foreign
currency exchange market to help
diversify their portfolios and
potentially increase their returns.
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
Loss Protection
International companies that work
in multiple countries are subject to
gains and losses based on
exchange rate fluctuations.
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
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.
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
Here are some simple tips that will help you increase
your profit potential and prevent you from losing
money.
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.
ABM_AE12
About BPI Forex Corporation
List of Currencies
Aside from the US Dollar, BPI Forex Corporation transacts in
the following
currencies:.
Australian Dollar Chinese Yuan
Korean Won Euro
Bahrain Dinar Hong Kong Dollar
British Pound Indonesian Rupiah
Brunei Dollar Japanese Yen
Canadian Dollar Malaysian Ringgit
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
ACTIVITY:
Look for copies of the old and new version of
Philippine Peso Bill and make a booklet. In each
page you have to paste the bill and write
information in each one.
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
Quiz:
1. It is the official currency of Philippines.
2. It is the only institution in the government which has the
function of printing money in the country.
3. The Philippine peso is divided in _____.
4. It is a form of exchange for the global decentralized trading
of international currencies.
5. It is the rate at which one currency may be converted into
another.
ABM_AE12
APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency
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
ABM_AE12