Bangko Sentral ng Pilipinas (BSP) deputy governor Diwa Guinigundo said fixing the rate would enhance and stimulate consumption by exporters and overseas Filipino workers (OFWs) only for a time as exporters also engage in importing.
Guinigundo said the fixed rate policy would only catch up with the exporters and it will "eat up their deposits."
In a forum last December 13, ex-Budget secretary Benjamin Diokno said fixing the peso to P55 per USS1 would perk up the economy on the countryside.
"The government view of a 'strong peso, strong economy', is false," Diokno said, pointing out that if the peso is set high, government will have difficulty because they have investments and debts in dollars.
"If the exchange rate is adjusted, the industry will be better and investment will be inward-looking," he added. (JLCP/Sunnex)
