1.   An increase in oil revenues and dollar based debt have brought in more dollars in the economy, prompting the Bank to buy dollars.

2.   A sliding peso undermined companies with dollar debts and those that buy raw materials overseas, such as Petron Corp. Ayala Corp. rose.

3.   A weak currency makes peso-denominated securities less valuable and makes it more expensive for companies to pay for imported raw materials and dollar debts.

4.   A weaker currency makes stocks less valuable and it makes more difficult for companies to pay for imported raw materials and dollar debts, which reduces earnings.

5.   A weaker currency makes stocks less valuable and it more difficult for companies to pay for imported raw materials and dollar debts, which reduce earnings.

6.   A weaker peso increases the costs of servicing dollar debts, and also makes imports more expensive which could stoke inflation.

7.   A weakening currency makes it more difficult for companies with dollar debts to meet their obligations.

8.   A weaker currency hurts peso-denominated securities such as equities, and makes it more expensive for companies to pay for imported raw materials and dollar debts.

9.   A weaker currency makes it harder for companies to pay for imported raw materials and dollar debts, hurting their earnings.

10.   But add interest payments on dollar debt, and almost all of the advantage of a devalued currency is wiped out.