FINANCE Secretary Carlos Dominguez III said he has reminded President Rodrigo Duterte of the “most important appointment” he will make in his six-year term as the country’s highest official in power.
Dominguez is referring to the appointment of a new Bangko Sentral ng Pilipinas governor, who will have a fixed six-year term starting July next year as incumbent central bank Governor Amando Tetangco Jr leaves his post.
“If you ask me, he should be retained,” said Dominguez, favoring a possible third term of Tetangco.
“I mean the guy’s really good. He’s recognized abroad as one of the top central bankers for many years,” Dominguez added.
Tetangco has served the Bangko Sentral for two consecutive terms since being appointed as governor in 2005 by then President Gloria Macapagal Arroyo and re-appointed by former President Benigno Aquino III on 2011.
Tetangco was the first Bangko Sentral governor who has served for two consecutive terms. A possible third year term will require an amendment to the central bank charter, which limits the number of terms Monetary Board members can serve to two.
Dominguez also addressed issues of the possible nomination of banker Antonio Moncupa to the post.
“In other countries, it’s weird for a banker to be a central bank governor,” he said.
Tetangco earlier said he favors one of his deputies to be his successor.
Tetancgo said in a text message for a seamless transition, the next Bangko Sentral governor should be one with central banking experience in response to a question on whether he will back his deputies, Nestor Espenilla and Diwa Guinigundo, for the job. Both deputy governors said they would accept the job if offered.
Dominguez said he was still hoping Tetangco would accept a third term if the legal impediments were lifted.
“That’s what I told Rody [President Duterte], this is the most important job appointment you will ever make,” he said.
“First of all he has the same term as you, even longer and this guy can help you very much especially in infl ation control and this guy knows how to do it, so if the guy knows how to do it, why would you want to change?” Dominguez asked.
Tetangco, 64, declined to say whether he turned down an offer from President Rodrigo Duterte to stay in office after his second, six-year term ends. In order to remain, the government will need to amend a law that limits the governor’s tenure to two terms.
“The next BSP governor will have the support of a competent, dedicated and committed team focused on achieving the institution’s mandate,” Tetangco said.
Tetangco started his career at the central bank in 1974 as a statistician. He has kept infl ation under 3 percent for almost two years and is set to keep the benchmark interest rate at a record- low of 3 percent on Thursday, according to all 18 economists surveyed by Bloomberg.
Tetangco’s looming departure comes at time when emerging nations are bracing for capital outfl ows as the US embarks on a steeper tightening path. The peso is trading near levels unseen in a decade.