Guiding Principles of Monetary

Administration
• Domestic-Monetary Stabilization – The Monetary Board shall
endeavor to control any expansion or contraction in monetary
aggregates which is prejudicial to the attainment or maintenance of
price stability
• International Monetary Stabilization – The Bangko Sentral shall
exercise its power to preserve the international value of the peso and
to maintain its convertibility into other freely convertible currency
primarily for, although not necessarily limited to, current payments of
foreign trade and invisibles.

This study source was downloaded by 100000865884382 from CourseHero.com on 04-20-2023 19:20:36 GMT -05:00
 Actions when the International
Stability of the Peso is threatened
• Whenever the international reserve of the BSP falls to a level the
Monetary Board considers inadequate to meet the prospective net
demands on the Bangko Sentral foreign currencies
• Whenever the international reserve appears to be in imminent
danger of failing such level
• Whenever the international reserve is falling as a result of payments
or remittances abroad, the Monetary Board shall:

This study source was downloaded by 100000865884382 from CourseHero.com on 04-20-2023 19:20:36 GMT -05:00
 a. take such remedial measures as are appropriate and within the powers
granted to the Monetary Board and Bangko Sentral under the provision
of this act.
b. Submit to the President of the Philippines and to Congress a detailed
report which shall include, as a minimum, a description and analysis of:
1. the nature and causes of existing or imminent decline:
2. the remedial measures already taken or to be taken by the
Monetary Board:
3. the Monetary Board, fiscal or administrative measures further
proposed; and
4. the character and extent of cooperation required from government
agencies for the successful execution of policies of the Monetary Board.
This study source was downloaded by 100000865884382 from CourseHero.com on 04-20-2023 19:20:36 GMT -05:00
 • The Monetary Board shall propose to the President with appropriate
notice to the Congress if:
a. The resultant action fails to check the deterioration of the reserve position
of the Bangko Sentral
b. The deterioration cannot be checked except by the chronic restrictions on
exchange and trade transaction or by a sacrifice of the domestic growth of
the economy

• The Monetary Board shall submit periodic reports to the President

and to Congress until the threat to the international monetary
stability of the Philippines has disappeared

This study source was downloaded by 100000865884382 from CourseHero.com on 04-20-2023 19:20:36 GMT -05:00
 Other Means of
Regulations/Supervisions
• The Bangko Sentral may, from time to time, issue circulars, circular
letters, and memorandum to all authorized banks regarding monetary
policies, banking and credit regulations and its influence on the
Philippine Economy.

This study source was downloaded by 100000865884382 from CourseHero.com on 04-20-2023 19:20:36 GMT -05:00
Powered by TCPDF (www.tcpdf.org)