What Are The Functions Of The Central Bank Of The Philippines?


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Lynn Blakeman answered

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

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