The former Aston Villa president of football operations has returned to Spain after two years in England, having previously worked at Sevilla and Roma.
Monchi says the Championship offers an increasingly attractive source of talent as Espanyol seek markets where they can compete despite financial restrictions in Spain.
"I think the Championship is one of the least understood competitions," he told BBC Sport.
"Having lived in England for two years and worked with Aston Villa, and now continuing to follow the competition because of Burnley, I can say that there are some very good players there.
"I think it is a competition with an extremely high level of competitiveness, very good coaches and intense demands. It is an excellent place to discover talent."
Espanyol also have a connection to the English second tier through their ownership group, led by Alan Pace, who also owns Championship side Burnley.