Name: Borja, Keith Lorelle T.

Date: May 9, 2024

Student Number: 20736292 Section: A-223

Central Bank of the Philippines

BSP or Banko Sentral ng Pilipinas is known as Philippines’ central bank which creates
and implement monetary policies that helps and maintain price stability for the country’s
economy and its growth. . In addition to issuing the country's currency, the BSP is in charge of
controlling the flow of credit and money into the economy and preserving the stability of the
financial. Overall, the BSP plays a crucial role in maintaining the stability and integrity of the
Philippine financial system and contributing to the country's economic development.

One of the things I learned during the live was how BSP contribute to financial stability
in the Philippines. For instance, In order to preserve price stability and manage inflation, the BSP
develops and carries out monetary policy. The goal of the BSP's money supply, liquidity, and
interest rate management programs is to support sustainable growth and stabilize the economy. It
also assesses risks in the financial system to identify potential threats to stability. This is done by
implementing prudential regulations and conditions. In addition to maintaining a stable foreign
exchange market, the BSP oversees the nation's foreign exchange reserves. This promotes trade
and investment flows while also assisting in preserving the stability of the Philippine peso. In
light of all of these factors as well as others, we can conclude that the BSP is critical to
preserving the integrity and stability of the Philippine financial system, which is necessary for
long-term prosperity and sustainable economic growth.

In order to manage market expectations, the BSP releases forward guidance regarding its
upcoming monetary policy actions. It can be beneficial to stabilize inflation expectations and
have an impact on market behavior to communicate the BSP's policy intentions clearly. The BSP
can accomplish its policy goals and advance financial stability by modifying the general state of
the Philippine economy with the effective application of these monetary policy tools. . In light of
all of these factors as well as others, we can conclude that the BSP is critical to preserving the
integrity and stability of the Philippine financial system, which is necessary for long-term
prosperity and sustainable economic growth.
Reference: https://www.facebook.com/watch/live/?
ref=watch_permalink&v=439438801824063