MANILA -- Officials of various organizations, some of which are central bank regulated, congratulated erstwhile Budget Secretary Benjamin Diokno for his appointment as the new Bangko Sentral ng Pilipinas (BSP) Governor.
Philippine eMoney Association Chairman Orlando B. Vea, who is also the President and CEO, of Voyager Innovations and PayMaya Philippines, vowed continued partnership with the BSP to further widen financial inclusion.
“We look forward to a continued partnership with the BSP under the leadership of the new Governor in promoting financial inclusion as a key pillar for sustainable growth,” he said.
Also, HSBC said the appointment of Diokno, who was the Secretary of Department of Budget and Management (DBM) under both the Duterte and Estrada administrations and DBM Undersecretary during the first Aquino government, “is likely to signal more pro-growth measures from the BSP.”
It explained that “since being appointed, Diokno has already noted that the BSP's monetary policies must be "in sync" with fiscal policy, in addition to its considerations for inflation and financial stability.”
“Given the Duterte administration's expansionary fiscal policy stance, this signals a bias for more monetary accommodation from the new governor,” it said, citing that “this is not entirely unexpected.”
“We have previously (said) that the BSP is likely to shift its focus on measures to support growth, as inflation normalizes,” it added.
Unionbank economist Carlo Asuncion said Diokno’s appointment is “a surprise because I was expecting an insider.”
He noted that “Diokno is an economist by training. So, I think, he is capable and knowledgeable about central banking and its various issues.”
“His experience in public policy will surely help as well. It is my hope that reforms to strengthen the BSP as important economic institution will continue and be upgraded to the next level under his wings as the new central bank governor,” he added.
Relatively, the Management Association of the Philippines (MAP) noted Diokno’s “expertise as an economist and his extensive experience in the Executive Branch on fiscal policy and management” as advantages for him as new BSP Governor.
“We fully support the BSP’s initiatives to maintain price and financial stability in support of sustained economic growth, a more efficient payments system as well as its efforts to further broaden financial inclusion,” it said.
“We are confident that the BSP, under Governor Diokno, will continue to promote good governance and transparent policies in the financial system,” it added.
Meantime, International Chamber of Commerce of the Philippines (ICCP) founder Francis Chua cited Diokno’s experience as a public servant as being a plus in his new role as BSP chief.
“He can bring new ideas to the banking system. He can also create dramatic changes to the system,” he said. (PNA)
