Bangko Sentral ng Pilipinas or BSP is a government agency that is responsible in implementing policies pertaining to money supply. They uses monetary policies to regulate money through credit and banking system in order to attain monetary stability conducive to economic development. It was established last January 3, 1949.
The objective of Monetary Policy are the following:
- To maintain internal and external monetary stability in the Philippines.
- To foster monetary, credit and exchange conditions conducive to a balanced and sustainable growth of the economy.
Tools of Monetary Policy
- Required Reserves
- Open Market Operations
- Selective credit control
- Moral suasion