Espenilla scores ‘B+’ in first year as BSP governor

Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla Jr. scored a “B+” from New York-based Global Finance during his first year as chief of the central bank.

According to the Central Banker Report Cards 2018: End of Easing Street report of Global Finance, Espenilla got the third-highest grade.

Espenilla took over as the central bank in July 2017, but he was not graded in the 2017 report as Global Finance said it was still too early to assess him.

Last September, Espenilla took a two-week leave of absence—from September 19 to October 2—for a medical treatment as he was diagnosed with an early-stage tongue cancer.

He has since extended his leave for another two weeks to give his recovery “the best chance possible.”

In its assessment, Global Finance cited the 25-basis point rate hikes in May and June.

“The BSP said its actions were designed to safeguard macroeconomic stability in an environment of rising commodity prices and ongoing normalization of monetary policy in advanced economies,” it said.

The central bank has since hiked rates two more times—50 basis points each in August and September.

In its report, however, Global Finance cited the peso depreciation to 12-year lows.

“Employment and wages are rising, but the Philippine ‘piso’ slumped to a 12-year low as government spending on infrastructure drew in imports, widening the current account deficit,” it said.

Last month, the peso depreciated to P54.325:$1, its weakest in nearly 13 years since closing at P54.425:$1 on Nov. 22, 2005. 

Espenilla succeeded Amando Tetangco Jr., who received the highest “A” grade for eight years during his 12 years as central bank governor. —VDS, GMA News