26/05/2026
A recent conversation with a client relocating to the Philippines raised an issue I think many international professionals overlook.
His new employer was discussing compensation in US Dollar terms…
…but the employment contract and salary payments were going to be denominated purely in Philippine Peso.
At first glance that sounds reasonable.
Until you zoom out and look at long-term currency risk.
If your lifestyle goals, future education costs, retirement planning, relocation plans or international commitments are effectively linked to USD purchasing power, but your salary and savings are concentrated in a structurally weaker currency, the FX drift compounds quietly over time.
The result?
You can become progressively “cheaper” from the employer’s point of view without necessarily realising it yourself.
That’s why I advised him the contract should ideally be anchored in USD terms, even if physically paid in Peso, with a rebasing mechanism if the Peso materially weakens over time.
To help visualise this risk, we ran his numbers through our Currency Risk Assessment tool.
The output was eye-opening:
• Illustrative 15-year purchasing power gap: -$313,808
• PHP assumed depreciation modelling: 5% p.a.
• USD projected value: $604k vs PHP equivalent purchasing power of $290k
• Rule of 72 effect: purchasing power halves in ~14 years at 5%
This is not about fear.
It’s about understanding the long-term impact of currency denomination on human capital and future purchasing power.
Most people focus on investment returns.
Far fewer focus on the currency their life is priced in.
The reality is:
Your salary currency may matter just as much as your investment strategy.
Try the assessment here:
NM Mindful Marketing Currency Risk Assessment https://lnkd.in/ghjusYav
