Budget Secretary Benjamin Diokno defends the proposed 2017 National Expenditure Program during a hearing of the Senate committee on finance. Beside him is Finance Secretary Carlos Dominguez. LYN RILLON
President Rodrigo Duterte’s gutter language has nothing to do with the depreciation of the peso, according to a Cabinet official.
The peso hit a seven-year low on Monday, closing at 48.25 to a dollar, the weakest since the close of 48.335 on Sept. 15, 2009.
READ: Peso plunges to 7-yr low
“The depreciation of peso, as far as I’m concerned, is no cause for concern,” Budget Secretary Benjamin Diokno told reporters at a press briefing in Malacañang on Tuesday.
Diokno said the depreciation of the peso was due to the strengthening of the dollar.
“We’ve seen the peso going to P55 in the past. The depreciation of the peso is a result of the strengthening of the dollar, more than the weakening of the peso,” he said.
“And why is the dollar strengthening? Because of the impending increase in the interest rate by the Fed. This has been ongoing for several quarters already,” he added.
Asked if Duterte’s controversial statements contributed to the peso depreciation, Diokno said it had nothing to do with his statements.
“It has nothing to do with the President’s statements,” he said.
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