Every time we hear about a relative or friend who has a dollar account, we can’t help but think that this person is part of the financial elite who are capable of owning this particular foreign currency. It has long been established that the US dollar is the currency which all others are compared to. In fact, we can blame it on history, when the US was the sole economic powerhouse that was left standing after the Second World War.
The almighty US dollar is still widely believed to be the top currency in the world. This leads to the assumption of many that only the rich can afford to own it. However, this isn’t the case anymore; most Filipinos can actually have a dollar savings plan to augment their local bank account.
The Power of the Dollar
The dollar has long been a status symbol to Filipinos. Perhaps you’re running a business in the US, or you have a big dollar investment. Regardless of how you’ve acquired it, the dollar is seen as a badge indicating you’re in the upper ranks of society. For many Filipinos, if you own a good amount of the currency, you must be rich.
However, not a lot of people know that there are other ways to own US currency, and one of the most common and predominantly practiced is the remittances from our overseas Filipino workers (OFWs). They are the critical element in the growth of dollar inflow in the country.
In fact, the hard work of OFWs has paved the way for even the ordinary Filipino to own US dollars. With the huge chunk of it coming from them—US$28.9 billion in 2018 to be precise—not only the affluent can afford to possess this currency.
Since the US dollar is the more powerful currency, many beneficiaries of dollar remittances have the prudence to save what they get from their families abroad and only get to have them exchanged to the local peso currency once the dollar’s value shoots up.
Financial institutions have recognized this growing trend, making dollar investments more accessible to the Filipino people. Not only is it easier to open a dollar savings account, but they also offer investment opportunities with added benefits. Owning the currency has never been more attractive than now when even the middle class can have the chance to earn from it. Finally, dollar investments in the Philippines are now more accessible and affordable than ever.
Making Dollar Investments More Accessible
Yes, doors have been opened for dollar investments. However, the local investment market is still mostly made up of peso-denominated securities even if the country has a massive untapped dollar reserve of US$85.02 billion as of June 2019.
The OFW demographic is mostly responsible for the steady stream of dollars coming into the country through remittances, but a lot of them may still don’t know what to do with their money apart from spending and keeping it in a bank to earn from a very low interest rate.
Here's the good news: local financial institutions are keeping up by slowly introducing dollar-denominated investment options for Filipinos.
Dollar investments will always have an advantage over their local currency counterparts. It can serve as a haven for wealth accumulation by being a safe “storage” of wealth while being more aligned with international inflation as opposed to local. You can also safely come through the risks involved in the relative stability of the Philippines peso. What’s better is you can tap into international markets with convenience.
One example of a dollar-denominated investment option for Filipinos is BPI-Philam’s Dollar Protect Plus, which has the added benefits of a life insurance policy. This allows you to create, accumulate, and preserve wealth in the most globally accepted currency in the world. It has low risk while offering affordable life insurance and health protection for you and your family while giving you access to global funds. You can definitely grow your investments in the long run to live a better life.
Not Only for the Rich
Dollar investments are perfect for the millions of Filipinos who are benefiting from OFW remittances. What was once exclusive to the rich is now open to anyone who wishes to grow their wealth from the most widely accepted currency in the world. So, don’t let your dollars sit idly in your savings account. Instead, allow it to grow exponentially through investments that not only help you get into the global market but also give you protection through affordable life insurance.
If you’re planning to reap more benefits from the dollars you have and build your wealth, visit any of the 900 BPI branches across the country and talk to a Bancassurance Sales Executive.