Finance chief prefers ‘slightly weak’ peso to help OFWs


Posted at Aug 25 2016 10:50 AM

MANILA – Finance Secretary Carlos Dominguez said Thursday he preferred a “slightly weak” peso against the dollar to boost the spending power of overseas Filipino workers' families and help the export sector.

Dominguez said the government “will try to balance” the exchange rate since a weak peso would also make imports more expensive. A conversion rate of P46 to P47 versus $1 “is what we would prefer,” he said.

“I would prefer a peso that is slightly weak… because our OFWs benefit and also the exporters benefit. That’s why we have to balance all the time,” he told a news forum.

“In the past administration, they always wanted a strong peso… However when you have too strong a peso, two things happen: your exports cost more so your exporters earn less, secondly, your OFWs who earn in dollars will earn less in pesos,” he said.

The peso opened at P46.55 to the dollar on Thursday, from Wednesday’s close of P46.525.