The Bangko Sentral ng Pilipinas (BSP) recently held a high-level discussion with officials from the Bank for International Settlements (BIS) to enhance monetary and financial cooperation.
BSP Governor Eli M. Remolona Jr., who previously served as a BIS official for 20 years, led the talks last Dec. 6 in Manila with BIS General Manager Agustín Carstens and other BIS officials.
Discussions focused on key central banking issues, including inflation dynamics and monetary policy, financial stability, sustainable finance, digital innovation, and the impact of artificial intelligence on central banking.
The BIS delegation included Adviser to the General Manager Daniel Rees, Chief Representative for Asia and the Pacific Tao Zhang, and Deputy Chief Representative and Regional Head of Treasury and Asset Management Miranda Tam.
Remolona, meanwhile, was joined by BSP Monetary Board members and select officers.
While not explicitly stated by the BSP, the meeting likely included discussions on the Nexus project, a BIS Innovation Hub initiative to enable cross-border payments.
The BSP joined the third phase of the Nexus project in March 2023, collaborating with other ASEAN central banks to develop a blueprint for connecting domestic instant payment systems (IPS).
The Nexus prototype, developed by the BIS Innovation Hub Singapore Centre in partnership with central banks in Italy, Malaysia, and Singapore, aims to link various payment systems. This includes the Eurosystem's TARGET Instant Payment Settlement (TIPS), Malaysia's Real-time Retail Payments Platform (RPP), and Singapore's Fast and Secure Transfers (FAST).
The BSP and participating central banks are working towards the live implementation of the Nexus project.
According to Remolona, the project could provide overseas Filipinos with a cheaper and faster way to send remittances, while also supporting the globalization of Filipino small and medium-sized enterprises.
Carstens has highlighted the potential of the Nexus project to connect a market of 1.7 billion people globally, enabling instant and affordable cross-border payments.
Remolona, with his extensive experience at the BIS, is renowned for his expertise in international central banking and finance.
During his 20-year tenure at the BIS, he held positions in Basel, Switzerland and Hong Kong, serving as regional head for Asia and the Pacific from 2008 to 2018.
Established in May 1930, the BIS serves as a bank for central banks and international financial institutions, providing financial services and fostering international monetary and financial cooperation. It does not offer services to the private sector.