On Mon, 7 Jul 2003 16:44:08 +0300, "Markku Grönroos"
wrote:
>
>"Miguel Cruz" wrote in message
>news:1FeOa.49622$n%5.20552@nwrddc02.gnilink.net...
>> Markku Grönroos wrote:
>> > "Chris Blunt" wrote:
>> >> as I know just about every other bank here gives better rates for cash
>> >> than they do for travellers cheques.
>> >
>> > It is one of those poor countries in which they cannot handle TCs
>decently.
>> > This is one but only one and minor reason why they remain poor.
>>
>> You think that the Philippines can't develop until they handle outdated
>> currency instruments to your satisfaction?
>>
>Satisfaction is important.
>
>> The reason that cash rates in the Philippines - at least for dollars - are
>> favorable is that dollars are comparatively liquid in the Philippine
>> economy. People want them. In many other places individuals have little
>
>I believe you are all wrong once again. The diffrence between the rates was
>very small. My personal bet for this odd situation in the Philippines is
>that they don't use transaction rates (the one which is used for plastic
>too) to buy cheques like in decently behaving countries but cash rates
>instead and because handling cheques in and out from the bank is supposedly
>somewhat more expensive than handling cash hence the somewhat higher rates.
>I don't know whether it is so but the explanation is good anyways. And it
>fits the picture.
I believe the explanation is that there is a lot of fraud involving
counterfeit or stolen travellers cheques in the Philippines, so banks
are reluctant to accept them. I think this also explains the problem
that originally started this thread - the difficulty Mrs Katz had
exchanging her travellers cheques in Manila.
Chris
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