A staff at a money changer counts peso and dollar bills at their counter in Quezon City, Monday, July 2, 2018. Jonathan Cellona, ABS-CBN News
MANILA - While many Filipinos are worried over the depreciation of the peso, economist Solita Monsod said the weakness of the local currency also has benefits for the domestic economy.
The peso closed at P54.47 to the dollar on Wednesday.
"We seem to be the only ones worried when the price of our currency goes down. Europeans are happy when their currency depreciates," she said.
Although the country would have to pay more for its dollar-denominated debts, the weaker peso could boost exports and reduce imports, Monsod noted.
"Pag bumaba ang piso natin (If the peso goes down) that means our exports will increase. There will be an increase in our competitiveness in exports," she added.
More Filipinos will also buy local goods compared to imported items, which will be more expensive as the peso weakens, she added.
Monsod said those who depend on imported goods would be the most affected.
Meanwhile, families receiving remittances will also benefit from getting more pesos for every dollar sent home.
Aside from the depreciating peso, the PSE Index also dipped to a 52-week low ahead of the Bangko Sentral ng Pilipinas' monetary policy-setting meeting.