Tetangco's reappointment crosses political barriers

President Benigno Aquino III's decision to let Amando Tetango Jr. — an Arroyo appointee — continue his post as the central bank's governor sends a "strong" message: The Bangko Sentral ng Pilipinas will be spared from partisan politics. Thus said Citigroup economist Jun Trinidad over the weekend. He pointed out that Tetangco's track record "was not lost [on] Aquino and his economic team." The BSP chief's reappointment to another six-year term starting July shielded the central bank from political intrigues, Trinidad said. He lauded Tetangco for staying neutral during the politically-volatile term of former President Gloria Macapagal-Arroyo. "[Tetangco] was focused... on helping strengthen BSP's credibility," Trinidad pointed out. ING Bank N.V. chief economist Tim Condon, meanwhile, said that Tetangco deserves to be recognized as "the best central banker in the world." "The BSP demonstrated last November that there's a better way to run macro polic[ies]... with less intervention in the foreign exchange market," Condon said. "With short-term interest rates not hostage to an exchange-rate target, the effectiveness of the central bank's policy interest rate for controlling inflation would increase," he continued. Philippine Deposit Insurance Corp. president Jose Nograles also said the reappointment of Tetangco "will provide continuity and stability in the management of the country's banking and financial system." Tetangco assumed the position of BSP governor in July 2005 after moving from one position to another in the BSP in a span of over 30 years. Other candidates considered for the fresh term as BSP governor were Finance Secretary Cesar Purisima, BSP Deputy Governor Nestor Espenilla Jr., and Bank of the Philippine Island president and chief executive officer Aurelio Montinola III. — PE/JE/OMG, GMANews.TV