Malacañang remains optimistic about economy

MANILA – Malacañang on Monday remains optimistic about the country’s economy after the Philippine peso-US dollar exchange rate reached PHP48.05 to USD1 last week.

Presidential Spokesperson Harry Roque made this statement after data from the Bangko Sentral ng Pilipinas (BSP) showed that the country’s gross international reserves (GIR) for the whole year of 2020 rose to USD109.8 billion in December, up USD4.98 billion from USD104.82 billion the month earlier.

“Patuloy po ang kumpiyansa sa ekonomiya natin na pinatutunayan po ng napakalakas po ng pagsara ng halaga ng piso. Ngayon po, ang halaga ng piso ay 48.05 to one dollar noong Biyernes (We continue to have confidence in our economy as evidenced by the very strong closing of the peso. Today, the peso was 48.05 to one dollar on Friday),” he said in a Palace press briefing.

Roque said this figure is the Philippine peso’s best finish against the US dollar in more than four years.

He acknowledged that a stronger peso may not always be a good thing, since it also means that Philippine exports become more expensive and less competitive.

However, he said it also means that imports will be less expensive, which will benefit businesses and manufacturers that import their raw materials.

A strong peso also translates to lower consumer prices, which would benefit Filipinos who have lost their jobs or are underemployed due to the pandemic.

It will also temper inflationary pressures emanating from imported goods and international commodity prices.

“Bagama’t maraming nagsasabi na ang malakas na piso ay hindi rin all together nakabubuti dahil nagiging mahal ang ating exports eh kahit papaano po, patunay po iyan na marami pong nagkukumpiyansa sa ating ekonomiya dahilan kung bakit lumakas din po ang ating piso (Although many people say that the strong peso is not all good together because our exports are becoming expensive, somehow, that proves that many are confident in our economy, which is why our peso also strengthened),” he said.

Late last year, Roque said “the worst is over” for the Philippines as the economy is seeing signs of recovery.