My colleagues and I—alumni of the Bangko Sentral ng Pilipinas (BSP), the Department of Finance (DOF), and the financial markets beats—almost always look forward to having lunch or dinner with the premier resident of Room 501.

Yes, Virginia, it’s always a privilege to have up-close and personal exchanges with no less than the BSP Governor. And last Monday, we again had the pleasure of having lunch with BSP Governor Eli Remolona.

For this veteran journalist, it’s noticeable how the “algorithm” has changed for BSP visitors. It takes me back down memory lane to when access to officials was relatively easy.

That’s correct, Virginia! To provide our respective readers with their daily dose of business and economic news, we used to gather nuggets of information and statistics to string into good stories, straight from face-to-face chats with the sources themselves.

We were like free-range chickens, allowed to roam around the BSP complex unhampered and unrestricted—from the five-story building where most top-tier and mid-level officials hold office to the DOF across the third-floor bridgeway, and even to the multi-story building.

Now, the algorithm has changed. The prevailing protocol is stringent! There’s a sentinel in practically every nook and cranny. Unless your ID is cleared or you are accompanied by BSP staff, heading to the DOF side of the complex—with its view of the famous Manila Bay sunset—is no longer permissible.

I fully understand the imposition of these stringent rules given the changing environment. Security protection is necessary.

Going back to Monday’s lunch with Gov. Eli, the topics discussed were diverse in scope—from updates in the entertainment industry (the Governor’s niece, Jessy Mendiola, is married to Luis “Lucky” Manzano) to the latest market developments and the newest restaurants on the block.

Speaking of a change in algorithm, Gov. Eli has adapted remarkably well to our group’s insatiable curiosity—not to mention our mischievousness—as we dive deep into various issues.

Likewise, gone is the tape recorder that Corporate Affairs used to strategically place, somewhat hidden in a flower arrangement, in front of the Governor’s nameplate.

It has now been three years since he was named top banking-steward of the industry—the seventh governor under the revitalized Central Monetary Authority and the 14th since the establishment of central banking in 1949.

Salud, Gov. Eli. It’s a delight to see the smile on your dimpled face and your eyes turn chinky whenever you hear or learn something new from our group.

Now, in the course of our exchanges, one serious market issue raised by Kler of Bloomberg was the deadline set by the BSP for the market to change its algorithm. The shift is meant to adapt to a new protocol in preparation for the inclusion of peso-denominated government bonds in the JPMorgan Chase & Co. Index (the Government Bond Index-Emerging Markets series), scheduled for Jan. 29, 2027.

This forever market student got riled up. My nose for news kept twitching. My interest was piqued, and my inquisitiveness led me to the ongoing buzz in the market about the difficulty banks face in complying with the Sept. 15 deadline to come up with a pricing mechanism that aligns bond pricing conventions with international standards.

As I understand it, the change involves treating withholding tax on a gross price basis rather than embedding it directly into premium or discount calculations, which in turn reduces accounting friction.

Compliance by Sept. 15 is tough! This was the common consensus I gathered from my dialogues with several senior bank executives. One official even shared that the change in the operational system cannot be done that quickly, as it entails extensive modifications and testing to ensure efficiency.

Another related issue I learned is that despite the lack of a BSP circular or memorandum instructing banks and financial institutions to alter their operational systems and product manuals, these institutions are the ones proactively doing roadshows and briefings for retail clients who will be affected by the changes.

To meet the September “go live” deadline, the latest suggestion floating around the banking corridors is that operational system computations “can go manual.”

“The industry will comply with the changes. However, we should be given ample time. The prevailing automated system carries zero risk. Going manual is risky… human intervention makes it prone to error,” explained a senior treasury official.

Let’s watch how this develops.