MANILA, Aug. 14— Filipinos should not worry about the peso’s depreciation as this boosts consumption spending and makes exports competitive, said the country’s chief economist.
“These are really driven by market forces so there is no really worry. What we need to worry about is wild swings,” said Socioeconomic Planning Secretary Ernesto Pernia.
Pernia, the National Economic and Development Authority (NEDA) Director-General, said the peso’s weakness could benefit the economy.
“It is going to make our exports more competitive, our OFWs (overseas Filipino workers) remittances will be a boost to consumption spending which is also an economic driver, economic growth stimulus. It’s also (good) for BPOs (business process outsourcing,” he added.
The NEDA chief further said it would be worrisome only if the peso falls at a sudden pace, similar to that during the second EDSA Revolution. The peso averaged at PHP50.99 to a dollar in 2001 from PHP44.19 in 2000, due to the volatility in regional currencies and concerns about the peace and order situation at that time.
The local currency closed last week near its 11-year low at 50.98 due to latest carping remarks between the United States and North Korea.