Metro Manila (CNN Philippines, January 12) – Outgoing Finance Secretary Benjamin Diokno will return to the Bangko Sentral ng Pilipinas after Rep. Ralph Recto was named as his successor in DOF.
Diokno, who served as central bank governor from 2019 to 2022, will be part of the seven-man Monetary Board, the Department of Budget and Management said on Friday.
The Monetary Board exercises the powers and functions of the BSP, such as those on monetary policy and supervision of the financial system.
Diokno, meanwhile, said he will turnover the Department of Finance to incoming Secretary Ralph Recto “on solid footing.”
“I am proud knowing that I will be leaving my post at a time when the Philippine economy, in general, and the DOF, in particular, are in a better state of affairs than when I inherited them,” he said in a statement.
During Recto’s oath taking ceremony on Friday, President Ferdinand Marcos Jr. thanked Diokno for his service and highlighted the standard he set for his successor.
“Any new finance secretary stands on the mighty shoulders of his predecessors and Secretary Recto is no exception,” Marcos said.
“We had to get the economy, we had to get our policies on to the right track and he (Diokno) has done a splendid job as secretary,” he added.
The chief executive also revealed that he had offered Diokno a position in the Maharlika Investment Fund’s (MIF) management team, an offer which he said Diokno declined.
“The original plan, actually, was for us– I asked Secretary Ben Diokno if he would like to join the MIF and the management of that and to also serve as a liaison in the MIF between the private sector and the government and the fund,” the chief executive said.
“But he begged off, saying that the sovereign fund is not what he feels is a specialty of his so he will return to his financial duties now in the monetary board,” he added.
Meanwhile, think tank Infrawatch PH bid Diokno goodbye and applauded the President’s decision to change the Finance chief.
“Infrawatch PH has noted several instances where Diokno’s approach was misaligned with the needs of the Filipino people,” the group said in a previous statement.
“It’s time to bid farewell to Benjamin Diokno, whose tenure as finance secretary was pockmarked by stark policy differences with the current administration,” it added.
The group raised previous issues under Diokno’s term including his stance on fuel taxes, his opposition to the previously implemented rice price cap, and his statements of the central bank doing enough to control inflation.
Infrawatch claims Recto is more fit as Finance chief due to his ability to “navigate the complex economic landscape we’re currently facing.”
“The change in the finance department is not just a bureaucratic shuffle. It’s a significant step towards aligning our economic policies with the realities on the ground. We need leaders who are not just theoretically sound but also practically grounded,” the group said.
Marcos said he will continue to rely on Diokno’s expertise as he returns to the BSP.
