What should I do with my US Dollars in 2013?

The Philippine Peso is showing strong signs over the US Dollar.  Some analysts predicts that the  Peso-Dollar exchange rate will breach the 40 PHP to 1 USD in 2013.  While the government has a conservative peso forecast of 42-45 Php in 2013, DBS and Bank of America sees it to close up to 39.30 by the end of the year.

US Dollars Photo

Since I am earning dollars from blogs, I wonder if it is still a good idea to keep my dollars or convert them to peso right away.  Keeping them as dollars may further loose its value.

I’m sure it the same question of OFWs, exporters, fellow bloggers and other dollar earners.  What to do with the US dollar for 2013?

The BPI Asset Management website suggests investing the dollars in their dollar-denominated BPI Unit Investment Trust Funds (UITFs) and ALFM Mutual Fund. I find this a sound advice.  Looking at the historical data, the portfolios have increased quite impressively despite the drop in the dollar rate in the past years.

Fitz of Ready to be Rich provided a strategy called hedging.  It is a strategy that keeps the value of dollars in tact. I find it a safe strategy for those who wish to hold on to the value of their dollar accounts.

My Peso-Dollar Strategy for 2013

There is a lot of positive vibes on the Philippine Stock Market for the coming year.  Thus, I am putting a good sum of my dollar account in mutual funds.  I am hopeful that even if the dollar rate continues to lower, the increase in the mutual funds will offset any loss.  I am investing with BPIs UITFs and the price has been on a plateau so far.

But like any investments there are risks involved.  So I am still keeping some amount in my savings account.  But I plan to use it for purchases that is also in dollars so that there is no foreign exchange risk.  I won’t be hedging my dollar account for now since I don’t foresee that I will be needing in the near future.

 

How about you? How do you plan to use your US Dollars?

 

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