Maharlika Investment Corp. (MIC) independent director Stephen Cu-Unjieng has come to the defense of Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. amid recent backlash 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 United States 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 the end of March and the lowest level since 2014.
