Press Secretary Ignacio Bunye said the government prefers a stronger peso because it means cheaper imports and lower payments for foreign currency debts.

"There are double effects in the strength of the peso – either one benefits or other gets affected. But overall, it is better to have a strong peso firstly because we are a net importer. We have more imports than exports," he said in a radio interview.

Aside from bringing down import costs, Bunye also explained a strong peso would minimize the government payments of large foreign debts and interest bills.

"So on a national scale, it would be more advantageous if we have a stronger peso," he added.

Bunye however acknowledged though that the fluctuation of the foreign exchange rate should be "gradual" so it could be "predictable" and lessen the impact on local exporters.

The peso has firmed up against the dollar in the past few weeks due to business optimism on government fiscal reforms and gains in the local bond market. It closed to 51.30 against the greenback last Friday.

But several businessmen have called on the Bangko Sentral ng Pilipinas to buy dollars to boost its international reserves and let the peso fall to help exporters recoup their losses.

Even Socioeconomic Planning Secretary Romulo L. Neri echoed the businessmen’s sentiments, saying the peso rally is hurting exporters.

The President earlier said the natural peso value should be less than P50 to a dollar and vowed to sustain fiscal reforms to secure credit upgrades.