MANILA - The weak peso is not necessarily good for exporters, the head of a European business group said Wednesday. 

Guenter Taus, president of the European Chamber of Commerce of the Philippines said that many exporters need to import raw materials, so this cancels out whatever benefit they may get from the weak peso making their goods cheaper on the world market. 

Taus said a depreciating currency can also send the wrong signal to investors.

"It is also an indication that the economy is not doing as well as it's supposed to be," Taus said in an interview with ANC's Market Edge. 

The peso has been hovering near 13-year lows amid a widening trade deficit.

This article was originally published in ABS-CBN News last October 10