Maharlika Investment Corp. Independent Director Stephen Cu-Unjieng has come to the defense of Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. amid recent criticism directed at the central bank chief.
Remolona has faced scrutiny in recent weeks, particularly over his comments on the peso, which has depreciated by about 7 percent against the US dollar since the escalation of the Middle East conflict, driven largely by higher oil prices and safe-haven demand for the greenback.
“It depends on how quickly it does that. If it does that in a measured way, then that might be okay,” Remolona said in a 23 May interview, referring to forecasts that the peso could weaken to P63.50 per dollar by August if oil supply disruptions persist.
“What we're doing is trying to maintain orderly markets in the foreign exchange market, and we're trying to prevent wild swings in the exchange rate,” the BSP chief added.
In a recent television interview, Cu-Unjieng defended Remolona’s remarks, describing the governor’s approach as “realistic and professional,” comparable to that of former Federal Reserve Chair Ben Bernanke and other modern central bankers.
“What [Remolona]'s basically saying [is] we have to live with it trading within a range, which is what we do when it's market forces,” he said.
“And when there's excessive speculation up or down, we will smooth it. That's all he said. He didn't say, ‘I want P63.50.’ Read it.”
Latest BSP data showed foreign exchange reserves plunged to a 12-year low of $469 million in April, nearly four times lower than the $1.74 billion recorded at end-March and the lowest level since 2014. The sharp decline may suggest heavier BSP intervention to temper volatility in the local currency, which has fallen to record lows 11 times since the Middle East conflict escalated in March.
“Now, just because it didn't exactly dovetail with what somebody's preconception was, I think he's being unfairly criticized,” Cu-Unjieng added.
On Saturday, the BSP said it expects headline inflation to settle within the 7.1 to 7.9-percent range in May, citing the peso’s depreciation as one of the main contributing factors. Cu-Unjieng agreed that the currency’s recent decline remains within tolerable levels and echoed Remolona’s view that a weaker peso can help narrow the current account deficit.
“Percentage-wise, it's within the normal range of fluctuation. It's just [an] emotional thing,” he said.
Remolona also recently drew criticism on social media following the release of his 2025 compensation figures, which some netizens viewed as excessive given the country’s economic challenges.
Data released by the Commission on Audit in early May showed BSP officials topped the list of highest-paid government executives, with Remolona ranking first after receiving approximately P52.76 million in compensation last year.
Cu-Unjieng, however, argued that competitive compensation is necessary to discourage corruption within the central bank and help preserve its independence.
“The pay is a matter of law and a matter of competitiveness and keeping our people honest,” he said.
“So you've seen no scandals since the central bank law was passed, I think, in 1994 or 1995, whenever it was,” he added.
Cu-Unjieng also described Remolona as “the most qualified central bank governor we’ve ever had,” citing his extensive experience at the Federal Reserve Bank of New York.
