MANILA - Budget Secretary Benjamin Diokno on Monday downplayed the peso's weakness against the dollar, saying this would boost consumption and accompanying taxes.
The peso value of dollar remittances will increase, giving Filipinos more money to spend. This in turn, will boost revenue from consumption taxes, Diokno told lawmakers.
While a strong dollar will also require up to P2 billion in additional disbursements for foreign debt payments, this will be offset by higher revenues from Value Added Tax (VAT), he said.
The peso has hovered at its lowest levels in a decade, as investors bet on up to three interest rate increased by the Federal Reserve, the first of which could come as soon as this month, according to analysts.