MANILA, Philippines – The Philippine Exporters Confederation Inc. (Philexport) is urging the Bangko Sentral ng Pilipinas (BSP) to adopt a monetary policy that will allow the Philippine peso to be competitive and at the same time generate more employment
This is in line with the country’s weakening exports which have declined for 16 months in a row until July this year.
As a significant catalyst for sustainable economic growth, Philexport president Sergio Ortiz Luis Jr. said the export sector stands to benefit if the BSP promotes a competitive exchange rate to weather the export slump and help push inclusive growth.
He said this would also benefit other dollar-generating sectors, including the business process outsourcing, overseas Filipino workers, and tourism.
“What we are therefore aiming now is the institutionalization of this policy that can push inclusive growth by incorporating the words inclusive growth and full employment as one other important objective of the BSP’s monetary policy, along with maintaining price stability,” Ortiz Luis said.
The export group chief said this could be done through amending the Central Bank law or RA 7653.
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Ortiz Luis said the European Central Bank and the United States Federal Reserve are currently implementing the “dual mandate” of promoting maximum employment and inflation objectives.
“Although the peso remains at a competitive level between P46 and P48 to a dollar, institutionalizing measures to cover times of excessive peso appreciation should be in place just as there are guidelines for depreciation. This will help ensure that a tolerable volatility rate of foreign exchange is determined,” he said.
