MONETARY

BSP
SECURITIES
BSP Securities are short-term
monetary instruments issued by the
Bangko Sentral ng Pilipinas (BSP),
the central bank of the Philippines.
These securities are used by the BSP
to manage liquidity in the financial
system and influence interest rates..
 BSP Securities

Purpose:
The primary purpose of BSP
Securities is to regulate the
amount of money circulating in
the economy by buying or selling
government securities in the open
market. This allows the BSP to
control short-term interest rates,
which in turn influences borrowing
and spending behavior among
financial institutions and

PURPOSE consumers..
 Key Features

1. Government Securities:
BSP Securities typically involve short-
term government debt instruments,
such as treasury bills and treasury
bonds, issued by the Philippine
government.
 Key Features

2.Open Market Operations:

The BSP conducts open market
operations through BSP Securities,
buying securities to inject liquidity
into the system or selling them to
absorb excess liquidity.
 Key Features

3. Monetary Policy Tool:

BSP Securities serve as a key tool in
implementing monetary policy,
allowing the central bank to adjust
the level of reserves in the banking
system and manage inflationary
pressures
 Key Features

4. Maturity Period:
The maturity period of BSP Securities
can vary, but they are generally short-
term instruments with maturities
ranging from a few days to one year.
 INTEREST RATES:
BY BUYING BSP SECURITIES, THE
BSP INJECTS MONEY INTO THE
ECONOMY, LOWERING SHORT-
TERM INTEREST RATES.
CONVERSELY, SELLING BSP
SECURITIES WITHDRAWS MONEY
FROM THE ECONOMY, RAISING
SHORT-TERM INTEREST RATES.

IMPACT ON THE
ECONOMY
 LIQUIDITY MANAGEMENT:
BSP SECURITIES HELP THE BSP
MANAGE LIQUIDITY IN THE
BANKING SYSTEM, ENSURING
THERE IS NEITHER TOO MUCH NOR
TOO LITTLE MONEY CIRCULATING,
WHICH CAN AFFECT INFLATION
AND ECONOMIC STABILITY.

IMPACT ON THE
ECONOMY
 BSP SECURITIES PLAY A CRUCIAL
ROLE IN THE MONETARY POLICY
TOOLKIT OF THE BANGKO
SENTRAL NG PILIPINAS. BY
ADJUSTING THE SUPPLY OF
MONEY IN THE ECONOMY
THROUGH OPEN MARKET
OPERATIONS, BSP SECURITIES
HELP REGULATE SHORT-TERM
INTEREST RATES AND MAINTAIN
OVERALL ECONOMIC STABILITY.

CONCLUSION