Manila Currency Exchange and Scam
by GreenGrasser@yahoo.com

To obtain the local currency, pesos, in Manila, you can try traveler's check (TC), ATM, and cash. TC are used less and less, compared to yester-years. A few years ago, many banks would exchange TC, but would add a fee per check. In Sep 2007, one exchange business on Mabini Street, near Padre Faura, had a sidewalk sign advertising the exchange of TC.

Using ATM is becoming more common. A colleague claimed that Banco de Oro's ATM gave the best exchange rate and better than Citibank's ATM. Even though I had a US bank account at Citibank, its ATM gave me a lower exchange rate than when I exchanged US dollar bills on the same day at its branch in Manila.

Exchanging US dollar bills will usually get you the best exchange rate, although the rate varies day-to-day and even morning to late afternoon. Unlike several other countries, non-new, marked bills are accepted with one exception -- which is, torn bills are not accepted. Same rate is given for both high-denomination bills ($100, $50) and low-denomination bills ($20, $10). Exchange booths at major malls (except SM malls) are safe locations to make exchanges at rates better than banks. Exception is SM malls, which give a rate similar to bank rates. Exchanges businesses can give the best rate and are located mostly on Mabini Street, most of which are in Ermita. Other exchange businesses located elsewhere, such as in Makati, usually give a rate worse than banks. Some major stores, like Robinson's department store will exchange currencies; however, they, like the banks and SM mall, will require you to list the serial number of each bill you exchange.

Do not do currency exchanges with Filipinos on the street.

I first came to Manila in early 1980s when the official exchange rate was 8 pesos to a dollar, bar fine was 100 pesos, and all-night fee was 250 pesos. There were currency exchange businesses on Mabini Street, which gave a rate of about 10 pesos to a dollar. One little problem was the excess pesos in your pocket when leaving PI. The banks at the airport would exchange dollars for pesos unless you showed a bank receipt for the original dollars-to-peso exchange. So, it became my practice to exchange some dollars for pesos upon arrival at the Manila airport and get a bank receipt, which I used to exchange my extra pesos upon departure.

In the early 1980s, there were Filipinos on the street who offered higher exchange rate. I ignored them. One time, one of these sidewalk exchange hawkers followed me into a Padre Faura exchange business. When I inquired about the exchange rate, I noticed that the hawker, standing about three feet to my right rear, signaled the cashier and the cashier cited a rate slightly less than what other businesses had cited. Rather than risk anger or a mugging, I pulled out a $50 bill to exchange. As I exited the shop, I noticed that the cashier handed some peso bills to the hawker. In other words, a sidewalk guy had scammed me by convincing the cashier that he had brought me into the business shop and was owed a percentage of my pesos.

After a few vacations in Manila, one afternoon on Mabini Street a Filipina lady (short, overweight, 30s, good English, dressed in a blouse and slacks) offered an exchange rate higher than the exchange business. I said OK and asked where? She led me to a block south on Mabini Street between Padre Faura nd Pedro Gil and along an alley to the east about 20 yards to an open area. About 30 feet to the right, there was a group of 30 men lined up and waiting for something. There were some small businesses over on their side of the open area. On our side were a few tables and benches where the Filipina lady had me sit facing her also sitting. She asked how much? Since this was a test run for me, I said $100 and showed my bill. She asked only $100? I said $100.

She then proceeded to slowly count out the equivalent in small peso bills. Then she counted them again a second time. She handed the stack of bills to me. I counted them and handed my $100 bill to her. She did not take my $100 bill; instead she took the stack of peso bills and began counting them again. She asked if her count was correct? I said that I did not know and that I would have to count it myself. She handed the stack of peso bills to me. I counted it and said that the count was correct and handed my $100 bill to her. Again she did not take my $100 bill and took back the stack of peso bills and began counting them again..

I was getting aggravated with this multiple countings and the time they wasted. Also, I knew that a good magician can do slight of hand tricks that the eyes will not see. In other words, once I counted the pesos, those pesos should stay in my hands. So, I put my $100 bill in my pocket, stood up, and walked back to Mabini Street. I looked back and saw the Filipina lady talking to a Filipino man, who was not around when I was sitting, and she was apparently explaining what happened.

Later, in the US I discussed my Manila experiences with a buddy who also made several vacation trips to PI. He described a similar exchange experience. He said that after his exchange for $200, he counted his pesos later in his hotel room and discovered the peso bills were short $70 worth of pesos. He was so angry about the loss, that he would not listen to my questions about more details on what happened. He had been a very trusting fellow with Filipinos.

Last week (late Sep 2007) in the early afternoon, I was walking north along Mabini Street on its west side. The alley and open area on its east side were long gone. Suddenly, a short overweight Filipina lady in her 30s crossing Mabini Street stepped into my path along the narrow sidewalk blocking me. She said exchange money and stuck out a piece of gray cardboard with some numbers handwritten on it? I said no, shook my head no, and stepped to the side to walk around her. She moved to block me again and said 47 pesos. The most that an exchange business was offering was 46.6 pesos. I said, "Get out of the way." She moved and started shouting at me, "Get out of the way. Get out of the way. Get out of the way." Thirty feet further to the end of the block, turned left onto Salas Street. Another Filipina lady came up to me from behind and offered 47 pesos. I shook my head and continued walking. Ten yards later, a Filipino guy in his late 20s approached me from my front and asked exchange? I walked on without reply.

It seemed strange that during my days in Ermita walking around most of the time, no one approached me about currency exchanges except for an occasional guy who motioned me to enter an exchange business. Then, all of a sudden, there were several Filipinos offering to exchange currency.

I did my errand and half an hour later was retracing my way back to my hotel on the east side of Mabini Street. About two blocks south of Padre Faura, I saw the same Filipina lady who blocked my path earlier and offered 47 pesos. She was standing in front of an opened, empty shop with eight other Filipino men and women. She saw me and started chanting, "Get out of the way. Get out of the way. Get out of the way." Her companions also started chanting at me, "Get out of the way. Get out of the way. Get out of the way." I walked off the sidewalk onto the Mabini roadway to bypass the group, whose numbers crowded the narrow sidewalk.

A few hours later, I walked along Mabini Street passed the same spot and the group was gone and the shop was boarded up. No one approached me to offer an exchange rate.

I surmised that there is a group of Filipinos who operate on Mabini Street near Padre Faura (and probably elsewhere) scamming tourists with offer of high exchange rates and shorting the currency exchange. My guess is that the they scored a sucker-tourist and fled the scene. And/or they follow a pattern of rotating their location, in case a previous day sucker-tourist is looking for them.

Let me know if someone else had a different experience with this Filipino gang. Otherwise, I suggest using the exchange businesses on Mabini Street, such as Sheena, Sheeha, Trivoli, etc. In my decades of using such businesses and dealing with tens of them, I have never (knock-on-wood -- an American superstitious gesture for avoiding bad luck) had a problem with exchanging dollars for pesos with them.

Fair warning.

Keep on mowing.
GreenG

For mongers who go to Cambodia Phnom Penh, you can get an advance on your credit card and change travellers cheques,to abtain this you must
1. have your passport.
2. Make sure that you have told your Bank in your own country, so your card is not blocked.
3. make sure the bank in PP will do this.

There are money changers boofs/venders were i have had no problem with, but dont use money changers who approach you in the street