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#B O C EXCHANGE RATES DOWNLOAD#

Some argue this may reduce their incentive to cut costs, and therefore, we get higher inflation over the long term. Manufacturers who export see an improvement in competitiveness without making any effort. THere is also a reduction in demand for imported goods, shifting consumption to domestic goods Therefore, there is an increase in domestic aggregate demand (AD), and we may get demand-pull inflation.

Cheaper exports increases demand for UK exports. The price of imported goods will go up because they are more expensive to buy from abroad (Import prices cheaper)Ī depreciation means the currency buys less foreign exchange, therefore, imports are more expensive and exports are cheaper.

An appreciation in the exchange rate will tend to reduce inflation.

If there is a depreciation in the exchange rate, it is likely to cause inflation to increase.

cutting interest rates) then they will tend to sell that currency causing it to fall in anticipation of the inflation. If they see a policy likely to cause inflation (e.g. It was a reflection that German industry was becoming more competitive than UK industry.Īlso, markets anticipate future inflation. This caused the Pound Sterling to depreciate against the German Mark. In the post-war period, the UK experience a higher inflation rate than Germany. Therefore, in the long run, changes in relative inflation rates should lead to a change in the exchange rates. Increase in supply of Pound sterling and fall in demand leads to lower value of the Pound against the Euro. This increase in the supply of pounds decreases the value of Pound Sterling. Therefore they will supply pounds to be able to buy Euros and Euro imports.

Also, UK consumers will find it more attractive to buy European imports.

Demand for UK exports will fall, and therefore there will be less demand for Pound Sterling. Therefore UK goods become less competitive.

High inflation in the UK means that UK goods increase in price quicker than European goods.

Disseminating the CMCs covering the exchange rate shall be the primary responsibility of BOC’s Central Records Management Division with the assistance of MISTG.Readers Question: Why is it that the value of the exchange rate falls when there is higher inflation? How inflation affects the exchange rateĪ higher inflation rate in the UK compared to other countries will tend to reduce the value of the Pound Sterling because: AOCG will then draft and sign an appropriate customs memorandum circular (CMC) for dissemination.

#B O C EXCHANGE RATES DOWNLOAD#

The bureau’s Assessment and Operations Coordinating Group (AOCG) shall have the responsibility of obtaining the officially published exchange rate from BSP either by electronic means through BSP’s website or by messenger.īOC’s Management Information System and Technology Group (MISTG) shall then download the officially published exchange rate to the Automated Customs Operating System or ACOS. It also consolidates all issuances on the applicable exchange rate for assessment purposes. In computing the duties and taxes, the prevailing exchange rate for the week on the date of entry lodgment shall be the basis for computing the duties and taxes of a particular shipment for consumption and warehousing entries.įoreign currencies shall be converted directly to Philippine peso.ĬMO 14-2019 was issued to establish a uniform application of conversion rates in harmony with the computerization program of BOC. If there is no officially published exchange rate on a Friday, the latest rate published by BSP prior to that Friday shall apply. Previously, BOC was adopting the Wednesday exchange rate published by BSP. 14-2019 signed by Customs commissioner Rey Leonardo Guerrero on March 8. The Friday exchange rate will be applicable from Saturday and up to Friday of the following week, according to Customs Memorandum Order (CMO) No.

The exchange rate officially disseminated to the public by the Bangko Sentral ng Pilipinas (BSP) each Friday shall now be the exchange rate to be adopted by the Bureau of Customs (BOC) for assessment of duties and taxes.