The weak peso is not necessarily something bad for the economy, a former socioeconomic planning secretary has said.

Ateneo de Manila University professor and economist Cielito Habito even described the peso as the most competitive currency in the region as the currency has found a level that benefits the country's trade.

"Honestly, we are okay. Why? Because the peso depreciated the most since the start of this year. I would rather call that we are the most competitive currency now rather than calling it we are the weakest, worst performing currency," Habito indicated.

He said the peso's depreciation is an "advantage" not only to the export sector but also to others, including families of overseas Filipino workers and domestic producers.

"This is something we have to have to change our mindsets and attitudes to. Exchange rate depreciation is not necessarily bad," Habito, leader of the Philippine Export Development Plan planning facilitation team, expounded.

The peso weakened to as much as P60 per $1 last week, which was the weakest ever for the currency.

The situation, however, is not the result of any domestic downturn but the global reaction to the series of policy rate increases of the US Federal Reserve to counter a developing recession.

Competitive peso needed

Under the export roadmap until 2028 which Habito said is now being drafted, the need for exchange rate competitiveness was underlined.

A weak peso is the only way to compete against the currencies of close export rivals.

Habito also cited the need to ratify the Regional Comprehensive Economic Partnership agreement immediately and continue the pursuit of more strategic trade agreements for greater market access.

"The Philippines is a member of only 10 free trade agreements, our neighbors either have 15, 17, 27. Naturally, our export receipts are not much because we are not even getting market access by taking advantage of these trade pacts," Habito added.