Tetangco among top central bankers

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Global Finance has named Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. as one of the world’s top central bankers for the third year in a row.

In a statement released Friday, Tetangco, one of the country’s top economic managers, was named one of the “world’s best central bankers” after earning a grade of “A” in Global Finance’s 2013 Central Bank Report Cards publication.

“As developed economies begin the gradual route to recovery and some of the largest emerging markets continue to slow, the world’s central bankers face a challenging time in managing monetary policy to positively influence economic stability and growth,” Global Finance said.

Global Finance has been grading central bank chiefs since 1994. Tetangco has earned a grade of “A” for five of his eight years as BSP head. He first earned the distinction in 2006 and repeated his achievement the year after.

He also earned the top grade in 2011 and 2012. Tetangco is the first BSP governor to have been appointed two consecutive terms.

Having risen through the ranks, Tetangco was named by former President Gloria Arroyo as governor in 2005. Tetangco is on his second term, which ends in 2017, after being reappointed by President Aquino in 2011.

“Every year, we assess the determination of central bankers to stand up to political interference and their efforts at influencing their governments on such issues as spending and economic openness to foreign investment and financial services,” Global Finance said.

Other central bankers that received the grade of “A” this year were Zeti Akhtar Aziz of Malaysia and Fai-Nan-Perng of Taiwan. Both were also named among the world’s top central bankers in 2012.

One notch below the top performers were Chile’s Rodrigo Vergara and the European Union’s Mario Draghi, who both received a grade of “A-.”

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  • joboni96

    pinararangalan ang kakuntsabang tetangco
    ng mga dayuhang kapitalistang

    nakinabang sa kanya

    REPAY ALL GOVERNMENT FOREIGN DEBTS
    USING FOREIGN CURRENCY RESERVES

    ayaw ni tetangco yan
    ayaw ng mga amo niya

    mawawalang ng malaking
    interest income

  • vir_a

    So GMA had produced the best Central Banker of the world. And Pnoy has benefited from the sterling performance of Gov. Tetangco. It means the economy was also best managed during the last years of GMA, a good or best legacy to Pnoy. In 2002, the US$ was 57 pesos. When GMA left, it went up to 40 to 1$, that’s 17 pesos per $US reduction of our foreign debts. Now, with Pnoy the US$ is down to 44 Php that’s 4 Php increase for every $US of our foreign debt.

    • Jeanne Thompson

      “It means the economy was also best managed during the last years of GMA, a good or best legacy to Pnoy.”

      Not really. From experience, ang pinakamaganda ay time ni Ramos. People have jobs so every weekend ay bumibili sila ng beer at pulutan sa tindahan namin. Beer ang gusto nila kasi mas mahina ang tama. Halos lahat ng bahay noon ay may nag iinuman. During the time of GMA might be the worst. Dumami ang tambay. Walang trabaho. Almost half ng mga workers sa isang malapit na industrial park ay nawalan ng trabaho. Kapag may nag iinuman gin na ang binibili para konting inom may tama agad.

      Mas madami ding naging OFWs noong time ni GMA kaya bumaba ang dollar to peso exchange. Kaya maraming OFWs kasi walang trabaho. My sister worked in Intel. Noong nagsara ang company na ito, 90 percent of the engineers working there went abroad kasi wala silang makitang matinong trabaho dito sa Pinas.

      • rickysgreyes

        That’s an interesting economic indicator on a micro level, just curious, so how are sales these past 2-3 years? Matumal pa rin ba or nag-i-improve? During time of Pnoy?

      • Jeanne Thompson

        Sorry nagsarado na ang tindahan namin on 2007. Di kinaya ang bagsak na ekonomiya. Pero nagsarado na sana yun ng mas maaga pa kung hinde dahil sa kita namin sa pagdadrive ng jeepney. Kaso binenta na rin namin ng mga 2009 kasi walang pasahero at sobrang dami ng jeep. Kulang na ang kita ng jeep para sa pambili ng krudo at maintenance.

  • Hayek_sa_Maynila

    Congratulations to Governor Tetangco! Congratulations to all the other Monetary Board members as well! The monetary authorities really deserves this recognition.

    Let me just enumerate a few things they did that has made the PHL one of the most resilient economies in the Emerging Markets today:

    1) BSP introduced the interest rate corridor or cut the yield on its Special Deposits Account (SDA) from 3.5% to 2.0% while retaining its policy rate at 3.5%. This helped achieve a number of things

    (a) the corridor helped temper the rapid strengthening of the peso throughout most of the first half of 2013, when foreign portfolio flows were pressuring the
    USD/PHP market to fall below 40 as the country bagged investment grade ratings from both Fitch and S&P. If the peso had strengthened too rapidly, BPOs – that purchase and lease a lot of real estate — would have postponed expansion of their businesses. A P39/$1.00 exchange rate would have eroded the purchasing power of Overseas
    Filipinos would have deteriorated significantly and slowed down economic growth. Many Filipinos would
    have lost their jobs in industries that compete with cheap imports (e.g.
    food, livestock, etc.)

    (b) It put the brakes on the rapid growth of its liabilities (SDA+RRP more than PhP2.0Trillion), which has led to sizeable losses for both the BSP and what could have been a huge burden for the ordinary taxpayer.

    (c) removed the perception that the direction of USD/PHP is a one-way bet, thereby, preventing a repeat of the 1997 crisis episode, where many PHL corporates increased their liability exposure to dollar debt and dollar bond issuances.

    2) Even at the risk of being criticized for being inconsistent and subjecting the economy to rapid liquidity growth, BSP restricted Trust companies from investing in SDAs directly. which helped achieve the ff:

    (a) slowed down the flow of speculative foreign portfolio funds into SDAs and keep PHL taxpayers from bearing the cost of managing global liquidity. This is clearly not the mandate of the BSP and an unnnecessary expense for the citizens of a developing economy.

    (b) boost demand for local corporate bonds, equities and other instruments that develop the PHL capital markets.

    (c) kept financing costs in the PHL low even if foreign funds exited the economy. The liquidity released from funds placed by trust companies in SDAs has prevented a credit crunch, which some Emerging market economies are now experiencing.

    3) Prevented asset price bubbles through so called macroprudential measures. By putting caps on bank exposure to the property market, BSP was able to bring peso interest rates to new record lows without subjecting the economy to the dangers of excessive risk taking in the asset markets. The fact that the growth of banking industry loans continue to grow below 15% despite record low policy rates.

    4) Kept inflation manageable as credit growth has been mostly peso denominated and growth at healthy double-digit pace.

    These are just some of the many things BSP has done so well despite all the challenges. The monetary authorities truly deserve a lot of credit for navigating the economy very well in this very turbulent global economic environment in 2013.

    • rickysgreyes

      Taga CB ka? Just curious

      • Hayek_sa_Maynila

        Hindo po. Taga private sector po

      • rickysgreyes

        Oh ok well you write like you’re from BSP, I’m saying this in a complimentary way since they (BSP) have really good technical writers, particularly in their research department.

  • pinoynga

    Congrats Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. as one
    of the world’s top central bankers for the third year in a row. Galing ng Pinoy! Mabuhay!

  • in_sOmniac

    Would have been nice to give some credit for OFWs who without their remittances, would have made BSPs job a lot more… challenging. Still, hats off to Tetangco’s leadership.

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