Central Bank of the Philippines
| Headquarters | Manila |
| founding | 1993 |
| country | Philippines |
| currency | |
| ISO 4217 | PHP |
| Website | |
| predecessor |
Central Bank of the Philippines |
| List of central banks | |
The Bangko Sentral ng Pilipinas (BSP) is the central bank of the Philippines and sparked on July 3, 1993, was established on January 3, 1949 Central Bank of the Philippines from. It has its headquarters with a total of five buildings in the Philippine capital Manila .
history
Establishment of the Central Bank of the Philippines
As early as the 1933s, a group of Filipinos tried to create a concept for a central bank in the Philippines. The trigger for this was the Hare Hawes Cutting Act of 1933, which declared the Filipinos their independence from the USA. Even during the Commonwealth of Nations (1935–1941), discussions about a central bank guaranteeing price stability and economic growth continued. Initially without an official central bank, the country's monetary system was administered by the Treasury. Still heavily influenced by the USA, they used the US dollar as their standard currency , which was 100% secured with gold as a currency reserve . In 1939 the Philippines submitted their first draft for a central bank. However, since they had been under the Tydings-McDuffie Act since 1934 , another declaration of independence, which, however, did not grant them independence in financial and foreign policy issues, they needed the approval of the US President, who at that time was Franklin, to implement the draft D. Roosevelt was . However, this refused due to strong opposition from capital interests. The second draft was received during the Japanese occupation in 1944, but its realization had to be canceled. After Manuel Roxas assumed the office of president in 1946, he commissioned the then finance secretary, Miguel Cuaderno , to draft a charter for a central bank. In addition, the Philippine-American Finance Committee, under the supervision of Cuaderno, was supposed to analyze the Philippine economic situation. He came to the conclusion that, on the one hand, a monetary authority, the central bank and a change in the currency system from the US dollar to a manipulated currency, i.e. a currency system that works with the aid of the allocation function, were urgently needed. Again the Central Bank Council, founded by Manuel Roxas, made a draft for a central bank. This reached the American Congress in February 1948. On June 15 of the same year, Roxas' successor Elpidio Quirino signed the Central Bank Act of 1948, also known as the Republic Act No. 265. The Central Bank of the Philippines was officially opened on January 3, 1949, with Miguel Cuaderno as head of the central bank. This was a decisive step for national independence.
After founding the Central Bank of the Philippines
In the 1950s the manufacturing industry in the Philippines had an annual economic growth of 10 to 12%. That is why the state had currency reserves built. External government debt was also very low. This led to strong protests on the part of the companies in the USA: They demanded new economic regulations in their favor. Capitalists and exporters in the Philippines, whether Filipino or foreign, had to have their income paid out in the Central Bank of the Philippines from US dollars to pesos, which were significantly weaker than the US dollar.
The establishment of Bangko Sentral ng Pilipinas
Over the next several years, changes were made to the Central Banks of the Philippines charter to meet economic needs. For example, on November 29, 1972, Presidential Decree No. 27 expanded. The goals now included expanding the capacity of the Central Bank of the Philippines, but also improving the policy-making structure, the scope of power of attorney and the way in which financial institutions dealt with problems. This should enable the bank to better cope with the developing economy and, more generally, with the emerging central bank problems. The idea of an independent monetary authority emerged, the implementation of which the National Assembly set itself the task of. Years later, the Central Bank of the Philippines adopted the 1973 constitution, the main aim of which was to establish an independent central currency agency. On June 14, 1993, President Fidel V. Ramos signed Republic Act No. 7653, the new central banking law. This provides for the establishment of an independent monetary authority, with preservation of price stability as the primary goal. In the old central bank charter, this was noted as the only goal. The new law is also intended to give the central bank financial and administrative independence, which the old central bank did not have. On July 3, 1993, the law of the new central bank, Bangko Setral ng Pilipinas, came into force. Thus, Bangko Sentral ng Pilipinas replaced the Central Bank of the Philippines from now on.
Tasks and goals of the Bangko Sentral ng Pilipinas
Bangko Sentral ng Pilipinas has set itself the task as the central monetary authority to ensure a competitive economy and financial system that should ensure a high standard of living in the Philippines. They also want to promote price stability and enable balanced and sustainable economic growth. This is supposed to lead to a healthy currency policy and effective control of the credit institutions.
Charter of the Bangko Sentral ng Pilipinas
The Charter of Bangko Sentral ng Pilipnas is divided into seven chapters and defines the regulations by which Bangko Sentral ng Pilipinas has to comply.
- Establishment and organization of Bangko Sentral ng Pilipinas
- The Bangko Sentral ng Pilipinas and their currency
- Model of the financial management of Bangko Sentral ng Pilipinas
- Tools of the Bangko Sentral ng Pilipinas
- Duties of a banker and government financial advisor
- Privilege and prohibitions
- Transitional provisions
Current
Defective banknotes
In both 2005 and 2010, it was reported that the central bank had issued faulty bills. In 2005, a whole range of banknotes had to be reclaimed because the name of the then President Gloria Arroyo was incorrectly printed as Gloria Arrovo. In 2010 the color of the blue-necked parrot was wrongly chosen on the 500 peso bill. Its tail feathers were green instead of yellow. In addition, an underground river, which is also a UNESCO World Heritage Site, was placed incorrectly on the map of the Philippines, which can be seen on six different banknotes. The deputy central bank chief Diwa Gunigundo apologized for this with the words: ¨ If we wanted an exact map, we would have had to draw in all 7000 islands¨ He justifies the wrong choice of the color of the bird with the fact that in the banknotes it is not the bird itself, but the color was in the foreground.
Big reduction in the interest rate
In 2012 the Philippines were hit by inflation. Bangko Sentral ng Pilipinas unexpectedly lowered the interest on loans by 25% to 3.75%. In the first quarter, interest rates fell by 50%, so everything pointed to inflation. Bangko Sentral ng Pilipinas called this decision a “preventive action against the associated risks of a global economic slowdown”. However, experts claimed that the Bangko Sentral ng Pilipinas acted to appreciate the peso in order to maintain competitiveness. Food prices rose worldwide.
Others
Bangko Sentral ng Pilipinas Museum
On January 3rd, 1999 a money museum was opened in Manila, which is supposed to show the evolution of the banknotes and coins of the Philippines. The coins and bills come from the bank's money fund, which has been keeping Philippine money since 1974, and from donations from coin collectors. The aim of the exhibition is to show the development of Philippine money. For a better overview, the gallery is divided into time periods that are important for the Philippine development. The museum is located directly in the bank.
Special notes
In 2012, Bangko Sentral ng Pilipinas issued special 500 Peso banknotes for the 45th annual meeting of the Asian Development Bank in Manila: the Asian Development logo was also on the banknotes. The reason for this was that Bangko Sentral ng Pilipinas wanted to express solidarity with the Asian Development Bank with its aim to eradicate poverty in Asia and the Pacific region. The Asian Development Bank estimates the poverty rate at 1.8 billion people worldwide. A total of 10 million of these special banknotes were in circulation.
Web links
Individual evidence
- ↑ Central Bank of the Philippines, Overview accessed January 23, 2016.
- ^ Encyclopädia Britannica, Hare-Hawes-Cutting-Act, accessed January 23, 2016.
- ↑ Encyclopädia Britannica, Tydings-McDuffie Act, accessed January 23, 2016.
- ↑ Gablers Wirtschaftslexikon, [1] accessed on January 28, 2016.
- ↑ Central Bank of the Philippines, History, accessed January 23, 2016.
- ↑ Central Bank of the Philippines, History, accessed January 23, 2016.
- ↑ http://cadtm.org/El-Banco-Mundial-y-Filipinas Eric Toussaint, November 3, 2014, accessed January 25, 2016
- ↑ Central Bank of the Philippines, History, accessed January 23, 2016.
- ↑ Central Bank of the Philippines, Vision, accessed January 23, 2016.
- ↑ Central Bank of the Philippines, Charter accessed January 23, 2016.
- ↑ Handelsblatt, Philippines Central Bank issues incorrect notes from December 20, 2010, accessed on January 25, 2016.
- ↑ http://www.eleconomista.es/seleccion-ee/noticias/4149088/07/12/El-banco-central-de-Filipinas-sorprende-con-un-recorte-de-los-tipos-de-25 -puntos-basicos-y-endurece-los-controles-de-capital.html Nouriel Roubini, December 27, 2012, accessed on January 26, 2016
- ↑ Philippine Museums: Bangko Sentral Ng Pilipinas Money Museum ( Memento from January 27, 2016 in the Internet Archive ) accessed on January 26, 2016
- ↑ http://muzeydeneg.ru/eng/?p=173 accessed on January 26, 2016
- ↑ P500 banknote with ADB logo issued ( Memento from January 27, 2016 in the Internet Archive ) May 4, 2012, accessed on January 26, 2016