‘Strong peso does not mean a strong economy’

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Concerns over the peso’s current weakness are unfounded and a strengthening could in fact weigh on the economy, Budget Secretary Benjamin Diokno said on Thursday.

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Budget Secretary Benjamin Diokno. PHOTO BY ROGER RAÑADA

“A weak peso is good for us it because it is good for the budget. It will increase the revenues,” Diokno said at the latest Dutertemomics Forum, held in Fairmont in Makati.

“We don’t want our peso to go to P48. That is not good for our economy,” Diokno added.

The budget chief said a stronger peso would also disadvantage overseas Filipino workers supporting families in the country.

“A strong peso does not mean a strong economy. We want a competitive exchange rate,” he said.

The currency closed at P50.795 to the dollar on Thursday, weaker compared to the previous day’s P50.575.
Meanwhile, Diokno said that Filipinos shouldn’t be afraid of foreign loans the government will be taking to fund its infrastructure projects.

“We have hefty gross international reserves,” he said.

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