Philippines' Duterte could reshape courts and banks

Subject

Bank and judiciary appointments in the Philippines.

Significance

This year, President Rodrigo Duterte has the chance to shape the future of the Philippine economy and legal system through his power of appointments, with implications stretching well beyond the conclusion of his single presidential term in 2022. Who the president selects as the central bank's next governor will affect perceptions of the Philippines' political economy and market risk. Duterte's appointments to the Supreme Court will influence the outlook for the Philippines' judiciary and legal system.

Impacts

• A politically motivated central bank governor appointment would put pressure on the Philippines peso and interest rates.
• The Supreme Court is likely to become more pro-Duterte, even though his two latest appointees will have short tenures.
• This is likely to diminish the success of legal challenges against the drug crackdown, insulating Duterte's team politically.