The Functions of Bangko Sentral NG Pilipinas (referred to as BSP in the following explanation) is responsible for the following functions
- Currency Issue - The BSP has exclusive power to issue the national currency.
- Lender of last resort - The BSP provides loans, discounts and advances to banking institutions for liquidity purposes.
- Liquidity Management. -The BSP has a monetary policy in place aimed at influencing money supply consistent with its primary objective to maintain price stability.
- Financial Supervision -The BSP supervises banks and regulates quasi-banking functions of non-bank institutions.
- Determination of exchange rate policy - The BSP determines the exchange rate policy of the Philippines.
- Management of foreign currency reserves - The BSP endeavors to maintain enough foreign currency to meet any foreseeable demands in order to preserve the international stability and convertibility of the Philippine peso.
- Other Functions -The BSP functions as the banker, financial advisor and official depository of the Government and government controlled institutions
