Cebu bankers laud PNoy's move to retain Tetangco as BSP chief

CEBU, Philippines - The Cebu Bankers Club (CBC) welcomes the decision of the PNoy government to retain the leadership of Amando Tetangco Jr. as the Bangko Sentral Ng Pilipinas (BSP) governor, saying it is good for the country’s overall financial sector.

Cebu Bankers Club (CBC) president Claro B. Cabaero saidthat Tetangco’s re-appointment as BSP Governor signals a stronger financial system in the country, as he was able to brilliantly manage the system, while the economic giants in the world suffered financial distress.

“He has a good credibility as BSP Governor,” said Cabaero adding that one of the greatest achievements of Tetangco is bringing up the country’s GIR (Gross International Reserve) from US$10 billion to US$63 billion.

Earlier, CBC joined the Cebu Chamber of Commerce and Industry (CCCI) in passing a resolution to President Benigno Aquino III, to support the re-appointment of Tetangco.

Former CBC president Prudencio Gesta said the government’s move to retain Tetangco could strengthen investors’ confidence in the financial system of the Philippines.

According to Gesta, Tetangco was able to protect the Philippine’s financial backbone during the global recession, thus the country’s financial sector is one of the strongest system in the world.

Likewise, in an earlier report, foreign banks in the country have welcomed the re-appointment of Tetango to another six-year term saying it help ensure economic stability in the Philippines.

Citibank economist Jun Trinidad was quoted saying that “Tetangco’s track record over the past six years highlighted by his excellent stewardship of BSP and monetary policy, as well as favorable economic management during the global crisis years, capped by a country rating upgrade.”

Both foreign and local bankers believe that Tetangco’s re-appointment shielded BSP from political intrigues.

Tetangco’s reputation as a technocrat, being the in BSP for over 30 years, sends strong message that BSP and monetary policy would be spared partisan politics.

Tetangco is tagged by financial experts and foreign bankers as the “best central banker in the world” as he has shown an alternative for dealing with hot money, instead of heavy intervention in the foreign exchange and sterilization in the money market practiced in most Asian countries.

In an earlier interview with market analyst Wilfredo Son Keng Po, he said that Tetangco’s leadership in the BSP has provided a “brilliant” manipulative strategy in protecting the country’s foreign exchange.

If it were not of BSP’s wise manipulation the Peso could have now settled at its strongest level (comparable to Thai Bhat) at P29 per US dollar.

Today’s lower P44 level to a green buck is already a good manipulation made by BSP to protect several sectors in the society, such as the families of the Overseas Filipino Workers (OFWs), and other dollar earning sectors, he said.

The Philippines’ situation in terms of managing the foreign exchange Son Keng Po said is in fact, one of the best among the region, and even better compared to the countries in Europe.

“BSP has done a good job [managing the foreign exchange]. The reason why our central bank is considered as one of the best central banks in the world,” he said.