Changes seen in MB composition

It seems that there will be some major changes in the Monetary Board, the highest policy making body at the Bangko Sentral ng Pilipinas (BSP).

BSP Gov. Rafael Buenaventura indicated yesterday the possibility that incoming Finance Secretary Jose Pardo may be allowed to become a member of the Monetary Board even though the finance secretary is not included as a member.

According to Buenaventura, he has nothing against Pardo sitting in the Monetary Board which would allow for better coordination of fiscal and monetary policies.

However, under the BSP's charter, the finance secretary was not specifically allowed to be a member of the MB to separate fiscal and monetary policy.

In fact, during the term of then BSP Gov. Gabriel Singson, it was the opinion of the Monetary Board that the finance secretary should not be allowed to sit on the board even though there is really no restriction.

The finance secretary can be invited by the Monetary Board from time to time.

However, in the new lineup, Buenaventura and Pardo have demonstrated that they can work well together.

Buenaventura clarified that he has no rift with outgoing Finance Secretary Edgardo Espiritu and that any differences were only created by media.

Espiritu, for his part, refused to confirm or deny any such rift.

However, Espiritu had repeatedly said that his departure would allow the Estrada Cabinet to finally achieve some "cohesiveness."

Under the charter of the BSP, the MB is comprised of two government representatives and five representatives from the private sector.

Aside from the BSP governor, the other government representative is the trade and industry secretary. -