Safe ways Filipinos keep their money when the Peso feels uncertain

Periods of inflation or currency fluctuations often make Filipinos worried about the value of their savings. This has happened many times in recent years due to local and international economic factors. When the peso feels uncertain, many people look for safer ways to store their money using a means that protects the value of their savings. This guide explains the safest ways you can keep your money when the peso feels uncertain.

Also read: Wise vs PayPal vs Payoneer: which works best for freelancers in the Philippines?

Keep savings in stable foreign currencies

Saving in relatively stable currencies like USD, EUR, or GBP better protects you against local economic policies and events that might affect the peso’s value.

Using multi-currency accounts

The popularity of modern fintech platforms has made it easy for Filipinos to hold USD, EUR, and GBP. Platforms like Grey, Remitly, and Wise let you store, receive, and convert money at more competitive rates than traditional banks. This easy access to foreign currency usually comes with lower fees, lower transaction costs, and more favourable currency conversion rates. Holding stable foreign currencies in multi-currency accounts is ideal for freelancers, remote workers, and online shoppers who manage multiple currencies and are wary of losing money if the peso’s value is unstable.

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Opening a dollar account

Many Filipinos use USD savings accounts at local banks like BDO or Metrobank, which are legal and regulated by the Bangko Sentral ng Pilipinas (BSP). While the interest rate might be lower (around 1-2%) than saving in pesos, it appreciates if the peso weakens.

Also read: How to open US and UK bank accounts in the Philippines

Simple hedging

This can be a little complex, but we will try to help you understand. A simple hedging strategy uses an investment or technique to reduce the risk of potential losses from an existing position. It’s like an insurance policy for your investments. So, if you save some money in USD, for example, you can use forward contracts to lock in the rate at which you will convert foreign currency to pesos whenever you wish. This means you can convert at the same rate at any time, regardless of the exchange rate fluctuations.

Investing in precious metals

Precious metals also protect against exchange rate fluctuations. In fact, their value often rises during currency instability. ****Filipinos commonly invest in gold through pawnshops and banks. The BSP’s gold reserves strategy makes it a reliable alternative to stable foreign currencies. Other precious metals, like silver, are even more affordable and can be held physically or virtually as a store of wealth.

Considering government securities and bonds

The government’s securities and bonds are other options for protecting your money from currency fluctuations. They are considered low-risk investments supported by the country’s full taxing power. Bonds like Retail Treasury Bonds (RTBs) are even accessible to the general public. The minimum investment is also low. There are various options for government securities and bonds.

• Treasury bills (T-bills): These are usually short-term obligations, and mature in one year or less.
• Treasury bonds (T-bonds): These are medium- to long-term obligations with maturities ranging from 2 to 25 years. They pay regular interest called coupons, from time to time. Then, you’ll get the amount you put in when it matures.
• Retail treasury bonds (RTBs): These are a popular and affordable option for smaller and individual investors. You can invest as low as PHP 5,000 and earn higher yields than typical savings accounts, with interest paid quarterly.
• Retail dollar bonds (RDBs): The government also issues securities in dollars for investors who prefer dollars.

Diversifying your portfolio

Investing in the stock market is a popular way to diversify your portfolio. However, it isn’t necessarily safer, as it comes with significant risks. Although it can offer high returns in the long run and protect against inflation, it is volatile and prone to fluctuations. This means investors risk substantial losses.

With options like mutual funds or unit investment trust funds (UITFs), you can put your money into a diversified pool of assets (including stocks and bonds). This fund is managed by a professional and avoids the risks of investing in individual stocks. Information is available through various financial institutions such as Metrobank or COL Financial.

Investing in real estate

Real estate is widely considered by many Filipinos, including Overseas Filipinos (OFs) and Overseas Filipino Workers (OFWs), to be a safe and effective way to preserve wealth and hedge against the uncertainty of the peso. Unlike currency, which can be volatile, real estate is a physical asset and it generally appreciates over time, especially in good locations. Rentals provide a steady stream of passive income that can even be passed down to the next generation.

Also read: How to send US dollars to the Philippines from anywhere

Managing your money the safe way

When the peso feels uncertain, it is best to diversify your finances across investments and stable currencies. Keeping all your savings in one currency makes you vulnerable to fluctuations, but splitting them across stable currencies, low-risk investments, and secure accounts helps protect your money. Grey makes it easier and safer for Filipinos to hold multiple currencies without worrying about high fees or unfavourable exchange rates. The platform’s layers of security ensure users’ data and funds remain safe and accessible whenever needed.

Get started with Grey today and worry less about the peso’s uncertainty.

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