The peso-dollar exchange, now at an 11-year low against the Philippine currency, is
part of the "rebalancing" process of the economy toward an investment and export-driven growth, Bangko Sentral ng Pilipinas (BSP) Governor Nestor
Espenilla Jr. said on Friday. "A moderate weakening of the
peso also helps dampen consumption. The economy is growing but consumption is a major
part of the driver so there is actually a need to rebalance it so we are actually driving it to an investment and export-led growth,"
Espenilla told reporters on the sidelines of the
economic Journalists Association of the Philippines (EJAP) Forum in Manila. "It's all
part of the adjustment process to promote sustainable
economic development," the BSP chief said. The Philippine economy has been growing at an annual average above 6 percent in the last six years, driven largely by robust domestic consumption. The BSP chief said a "moderate" weakening of the
peso is supportive of exporters as it will boost their products' competitiveness and will increase the value of overseas Filipino workers' remittances as well as the business process outsourcing sector. "So there are positive things there,"
Espenilla said. The depreciation is moderate at 2.5 percent in the year-to-date, according to the BSP chief. "It's gradual but is also consistent since the government is also pushing for an investment and export-led
economic growth which is actually sustainable," he added. ? VDS, GMA News
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