MANILA, Philippines — Price competitiveness of the country’s exports weakened in 2008 because of the relative strength of the peso against competing currencies — an added problem Filipino exporters had to contend with last year on top of the crisis-led decline in global demand for goods.

According to the central bank Bangko Sentral ng Pilipinas (BSP), the peso appreciated in real terms last year against competing currencies. Data showed that the real effective exchange rate [REER] of the peso stood at +10.2 percent against other Southeast Asian currencies, including won, baht, ringgit, rupiah and the Singapore, Hong Kong, and Taiwan dollars.

REER compares the movement of the peso-dollar exchange rate with those of other currencies against the US dollar. A positive REER means the peso’s depreciation against the US dollar is slower than the weakening of the other currencies against the greenback. It could also mean that the peso’s appreciation against the US dollar is faster than the rise of the other currencies against the US dollar.

Exporters are adversely affected when the peso registers a positive REER against competing currencies. This is because a stronger peso makes Philippine-made goods more expensive and therefore less competitive in terms of price.

While economists largely blame the global weakening of consumption appetite for the drop in the Philippine exports last year, they also said the relatively strong peso was partly responsible for it.

The National Statistics Office earlier reported that the country’s exports fell nearly 3 percent year-on-year to $49 billion. This reversed the 6.4-percent rise in export income in 2007.

The peso averaged at 44.47 against the US dollar last year, stronger by 3.8 percent than the 46.15 recorded the previous year. Analysts said the appreciation would not have been much of a problem for exporters had the competing currencies kept pace with the peso’s rise against the US dollar.

Falling exports last year prompted calls for the government to peg the peso at a fixed exchange rate that will make locally made goods more price competitive. But the BSP stood firm on its policy to keep the peso’s value at market-determined levels.