Tetangco gets 'A' rating from Global Finance

Amando Tetangco Jr

Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr has been named one of the world's top seven central bankers.

According to the Global Finance magazine in its annual Central Banker Report Card for 2007, Tetangco was one of seven top central bankers in the world, wielding monetary tools to contain inflation and able to resist intense political pressure for short-term economic relief.

The survey covered a total of 31 heads of central banks worldwide. It is the second year that Tetangco had joined the list although this year, his overall rating went up to A from last year's A-minus.

Aside from Tetangco, the list of seven included the renowned economist Stanley Fischer of the Bank of Israel and Malaysia's Zeti Akhtar Aziz who was commended for her even-handed management of monetary policy.

The three are joined by Sweden's Stefan Ingves, India's Yaga Venugopal Reddy, Indonesia's Burhanuddin Abdullah and Taiwan's Fai-Nan Perng.

In his second full year at the helm of the BSP, Global Finance cited Tetangco for his role in overseeing the build up of international reserves to record levels.

According to Global Finance, the country's inflation rate had dropped well below the official target, helped along by steady rains in key agricultural areas which relieved supply-related pressures.

"Tetangco can not take credit for the weather but he deserves a top grade for helping to create an environment conducive to sustained growth," Global Finance said in its report.

The report card reflected the results of an annual survey of the world's central bankers based on their performance, effectiveness and general success in wielding monetary tools to steer their country's economy.

The BSP has been a consistent top performer based on the assessment of other central banks in the world. The Global Finance magazine has, in the past, awarded the top rating to the late and former BSP Governor Rafael Buenaventura for two years in a row.

"Individually, many of the world's leading central bankers seemed to be in disarray after the subprime debacle began to unfold in mid-2007," Global Finance said. "As a group though, they acted with remarkable unity."

According to Global Finance, the world's leading central bankers were perceived by markets to be riding to the rescue of a financial system in distress but they were also taking a collective risk.

"They were betting that the inflationary effects of their accommodative monetary policy would be offset by the pressure that the recent turmoil had brought to bear on their economies," the report said. "If it pays off their concerted action will be seen as a new paradigm in a globalized world where central bankers work in harmony to stave off widespread financial upheaval.