What is the effect of peso depreciation on exports?
Answer (1)
Peso depreciation makes exports cheaper for foreign buyers. For example, if the peso falls from ₱55 to ₱60 per US dollar, Philippine products become more affordable in international markets. A box of mangoes that costs $10 before may now cost only $9, making it more competitive. This encourages more exports and can help our exporters earn more income, especially in provinces like Davao, Zamboanga, or Bukidnon where many export-quality fruits and goods are produced.
