A central banking nerd

It’s been raining for several days now; still splattering as I write this. Friday night was no exception, which is why I missed the 30th anniversary reception of the Bangko Sentral ng Pilipinas (BSP) for the banking community hosted by our new BSP Governor Eli Remolona.

But I heard that many braved the rains – and the Friday traffic – to meet and greet Gov. Eli who, in his speech, gave a glimpse of what he intends to focus on as the new resident of the BSP’s Room 501.

On inflation, he said that while progress has been made and we are now reaping the fruits of his predecessor Governor Felipe Medalla and the Monetary Board’s hard work, the battle isn’t over yet.

“It is too soon to declare victory. Core inflation remains high. There are still upside risks to inflation,” Gov. Eli said.

In his speech, Gov. Eli described himself as a central banking nerd who always thinks about monetary policy, banking supervision and the payments system.

Talking about the economy’s strong recovery after the debilitating pandemic, Gov. Eli credited the country’s strong banking system.

“Our banks maintained more than adequate levels of capital and remained flush with liquidity. This time, there was no need to repair balance sheets. I have said this before, and I’ll say it again. Unlike in previous crises, this time our banks were part of the solution rather than part of the problem,” he said.

“The next challenge is the payments system. For the sake of efficiency, we seek the magic of digitalization. We want this magic to also help with financial inclusion,” he also said.

Moving forward, Gov. Eli said, the BSP “would continue to work hard in pursuing our mandate of ensuring price stability, financial stability and a safe and efficient payment system.”

Gov. Eli is armed with enough international experience, having worked as an international regulator with the Federal Reserve Bank of New York and the Bank for International Settlement.

His hero in fact is the late Edward Gerald “Gerri” Corrigan, the 7th president of the Federal Reserve Bank of New York and the man credited for helping cushion Wall Street’s crash in the 1980s, Gov. Eli said in an interview with Bloomberg.

And what does he do when he is not doing central bank work? Gov. Eli said in the same interview that he loves taking nature hikes. “The steeper the slope, the better.”

Would he be hiking monetary policy rates as well? “We will wait and see. We will analyze the data as they arrive and that analysis will decide monetary policy down the road,” Gov. Eli said on Friday night.
Here’s wishing Gov. Eli all the best as he fulfills the BSP’s mandate at a still very challenging time for the country. He will need all the luck and support because he will perhaps face pressure from de facto central bankers and from others in the corridors of power.

Philippine-American friendship

As the month of July comes to a close, it’s fitting to raise a toast to 60 years of Philippine-American friendship.

Clearly, under the administration of President Marcos, the US-Philippines ties are stronger than ever.

US Ambassador MaryKay Carlson hosted a reception last June to celebrate the independence of the United States of America and mark the strong friendship of the Philippines and US and she noted that Americans and Filipinos share the values of “liberty, equality and justice which form the foundation of our bilateral partnership.”

There is much to celebrate, indeed. The US embassy has highlighted partnerships in trade, tourism and many other aspects of business.

Coffee, anyone?

“One of our important trade partnerships is the Philippine Coffee Advancement and Farm Enterprise (PhilCAFE Project). Through this, the US Department of Agriculture helped facilitate the export of over $300,000 worth of conventional and specialty coffee, empowering Filipino farmers and boosting the Philippine coffee industry,” the US embassy in the Philippines said.

Another welcome development is the recent announcement of US carrier United Airlines of its direct flight to Manila, giving American travelers more opportunities to discover the Philippines. It would also boost competition with Philippine Airlines, which would benefit consumers. 
As a Filipino, I look forward to deeper relations between the US and the Philippines and hope that this would be mutually beneficial to both countries.

Amber Kinetics and energy innovation

During his State of the Nation Address, President Marcos put the spotlight on renewable energy.

This is timely as more companies are becoming more conscious of the use of sustainable and renewable power.

For instance, energy storage solutions Amber Kinetics and De La Salle University (DLSU) have signed a Memorandum of Agreement renewing their partnership for another five years.

The MOA started in 2018, when both parties committed to foster collaboration and knowledge development through the establishment of a pioneering Flywheel array installation and test facility in DLSU’s Laguna campus.

The energy generated by the Flywheel energy storage systems is intended to be sent back to the DLSU grid to partially support the electricity demand at the Laguna campus.

“We are excited about the prospects that lie ahead and confident that our partnership will continue to flourish, inspiring future avenues for collaboration and empowering the engineering students to learn more about cutting-edge technology to supplement their academic learning,” said Ed Magpantay, VP of Global Supply Chain of Amber Kinetics.

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Email: [email protected]. Follow her on Twitter @eyesgonzales. Column archives at EyesWideOpen on FB.