June 23rd, 2023
House Ways and Means Chair Joey Sarte Salceda (Albay, 2nd district) congratulated Monetary Board member Eli Remolona for his appointment as Governor of the Bangko Sentral ng Pilipinas (BSP) once current governor Felipe Medalla’s term expires this July.
“I congratulate Dr. Eli Remolona for his appointment as Governor of the BSP. Dr. Remolona has formidable experience in modern central banking, from his stint in the Bank of International Settlements and from the Federal Reserve Bank of New York. His appointment was widely expected by many in the banking and finance sectors, and is welcome news,” Salceda said.
Salceda adds that “the appointment of Dr. Remolona should also signal the country’s keenness on certain recent developments in central banking, such as digital central bank currencies and de-dollarization. He is the best person for these areas of development.”
“Dr. Remolona was also involved in regulatory reform for much of his career, which signals a BSP that will likely continue to err on the side of caution when it comes to dealing with the banking sector.”
“The market will most likely test the new Governor’s policy direction and will once he takes over on July 2. I also expect policy continuity from the highly successful balancing act of Governor Medalla to protect the peso without exhausting our gross international reserves.”
“As a side note, the BSP governorship returns to Ateneo with Dr. Remolona’s appointment. The last instance that was the case, we had Dr. Amando Tetangco, who is widely regarded as the best central banker in Asia during his time,” Salceda added.
Medalla performance “outstanding”
Salceda also thanked Medalla “for his outstanding performance as BSP governor during immensely difficult times.”
“Governor Medalla’s stint in the BSP was extremely successful, judging by the challenges he has had to surmount and the outcomes of his decisions. We were able to withstand the global tide of Fed hikes, investor uncertainty, and global market disruption because of his skillful steering of the BSP.”
“Governor Medalla has also been a mentor, especially during the fiscal reforms of 2003-2006 and I continue to learn from him in my work as Chairman of the House Committee on Ways and Means. I look forward to hearing more of his usual wit and candor, which he will now be freer to dispense to policymakers like myself.”
Some challenges ahead
Salceda meanwhile reiterated that “there are challenges for Dr. Remolona to address the moment he takes over.”
“The global market remains disrupted although some equilibriums are being created in key commodities, so it’s helping ease inflation. There are also jitters about the health of US financial markets.”
“Dr. Remolona will have the very difficult task of protecting the country from external shocks and higher prices while providing enough policy space for growth. Dr. Medalla walked that tightrope skillfully. I am optimistic Dr. Remolona will also do so.”