Philippines Currency

A country-by-country look at the economic crisis that has swept Asia, and the challenges nations face in restoring growth. (Stock market and currency changes are since Jan. 1. Currency changes versus U.S. dollar). THAILAND * Currency decline: -36% * Stock market decline: -52% * Population: 60 million. During the export boom of the early-90s, Thai banks flush with cheap foreign capital lent heavily to domestic borrowers, fueling a real estate bubble. Imports surged.

A country-by-country look at the economic crisis that has swept Asia, and the challenges nations face in restoring growth. (Stock market and currency changes are since Jan. 1. Currency changes versus U.S. dollar). THAILAND * Currency decline: -36% * Stock market decline: -52% * Population: 60 million. During the export boom of the early-90s, Thai banks flush with cheap foreign capital lent heavily to domestic borrowers, fueling a real estate bubble. Imports surged.

Philippine Foreign-Exchange Controls Delayed: The extensive liberalization of the Philippines' foreign-exchange controls scheduled to take effect last week has been delayed and could be modified before any implementation. The reform program, announced early last month, called for the elimination of all restrictions on the sale and movement of foreign exchange.

So far, investors appear to believe that the currency devaluations in Thailand and the Philippines were the right medicine. In Thailand, the main stock market index has surged to 628.55 from an eight-year low of 464.77 on June 19, for a gain of 35%. In the Philippines, the composite stock index rocketed 190 points on Friday, or 7.6%, to 2,701.14, immediately after the nation's central bank stopped defending the peso. The index still is down 15% year-to-date, however.

A Manila judge ordered the arrest of Philippine presidential candidate Imelda Marcos after she boycotted an arraignment to protest alleged electoral fraud. Judge Teresita Flores revoked Marcos' bond and issued a warrant for her arrest after she failed to appear to answer charges of illegally transferring foreign currency to Swiss banks during her time as first lady.

So far, investors appear to believe that the currency devaluations in Thailand and the Philippines were the right medicine. In Thailand, the main stock market index has surged to 628.55 from an eight-year low of 464.77 on June 19, for a gain of 35%. In the Philippines, the composite stock index rocketed 190 points on Friday, or 7.6%, to 2,701.14, immediately after the nation's central bank stopped defending the peso. The index still is down 15% year-to-date, however.

The governor of the Philippine central bank thinks it was a mistake to print the U.S. flag prominently on the new 100-peso note, the newspaper Malaya reported Sunday. "The artist made a mistake in giving undue prominence to the American flag," Gov. Jose Fernandez was quoted as having said. But Fernandez was reported as also saying that the new bill will probably remain in circulation to prevent a shortage of the notes, which are worth about $5.

The devaluation of Thailand's currency spread to the Philippines today as that country announced it will loosen controls on the peso, fueling the threat of a downward spiral across Southeast Asia if countries try to outdo one another in seeking a competitive edge. The peso, long one of Asia's most stable currencies, quickly fell 12% to 29.45 to the dollar in early trading. Minutes later, dealings were temporarily halted.

When it's going your way, capitalism naturally seems like the only logical economic system. What's not to like about the gloriously healthy U.S. economy and the ever-rising stock market, for instance? But when capitalism goes awry, the cost in human terms can be devastatingly high. And suddenly the wisdom of abiding by a free-market system is lost on many people.

The U.S. Customs Service has impounded millions of dollars worth of money, gold and jewels that former Philippine President Ferdinand E. Marcos brought to Hawaii when he fled Manila last week, the State Department said Monday. As the new government of President Corazon Aquino moved to challenge Marcos' right to retain the wealth he amassed over 20 years in power, officials and judges in Washington, New York and Honolulu ordered much of his property frozen until the legal issues are resolved.

When it's going your way, capitalism naturally seems like the only logical economic system. What's not to like about the gloriously healthy U.S. economy and the ever-rising stock market, for instance? But when capitalism goes awry, the cost in human terms can be devastatingly high. And suddenly the wisdom of abiding by a free-market system is lost on many people.

The devaluation of Thailand's currency spread to the Philippines today as that country announced it will loosen controls on the peso, fueling the threat of a downward spiral across Southeast Asia if countries try to outdo one another in seeking a competitive edge. The peso, long one of Asia's most stable currencies, quickly fell 12% to 29.45 to the dollar in early trading. Minutes later, dealings were temporarily halted.

A Manila judge ordered the arrest of Philippine presidential candidate Imelda Marcos after she boycotted an arraignment to protest alleged electoral fraud. Judge Teresita Flores revoked Marcos' bond and issued a warrant for her arrest after she failed to appear to answer charges of illegally transferring foreign currency to Swiss banks during her time as first lady.

Philippine Foreign-Exchange Controls Delayed: The extensive liberalization of the Philippines' foreign-exchange controls scheduled to take effect last week has been delayed and could be modified before any implementation. The reform program, announced early last month, called for the elimination of all restrictions on the sale and movement of foreign exchange.

The governor of the Philippine central bank thinks it was a mistake to print the U.S. flag prominently on the new 100-peso note, the newspaper Malaya reported Sunday. "The artist made a mistake in giving undue prominence to the American flag," Gov. Jose Fernandez was quoted as having said. But Fernandez was reported as also saying that the new bill will probably remain in circulation to prevent a shortage of the notes, which are worth about $5.