The BSP’s primary objective is to maintain price stability conducive to a balanced and sustainable

economic growth. The BSP also aims to promote and preserve monetary stability and the convertibility of
the national currency.

Responsibilities

The BSP provides policy directions in the areas of money, banking and credit. It supervises operations of
banks and exercises regulatory powers over non-bank financial institutions with quasi-banking functions.

Under the New Central Bank Act, the BSP performs the following functions, all of which relate to its status
as the Republic’s central monetary authority.

 Liquidity Management. The BSP formulates and implements monetary policy aimed at
influencing money supply consistent with its primary objective to maintain price stability.
 Currency issue. The BSP has the exclusive power to issue the national currency. All notes and
coins issued by the BSP are fully guaranteed by the Government and are considered legal tender
for all private and public debts.
 Lender of last resort. The BSP extends discounts, loans and advances to banking institutions
for liquidity purposes.
 Financial Supervision. The BSP supervises banks and exercises regulatory powers over non-
bank institutions performing quasi-banking functions.
 Management of foreign currency reserves. The BSP seeks to maintain sufficient international
reserves to meet any foreseeable net demands for foreign currencies in order to preserve the
international stability and convertibility of the Philippine peso.
 Determination of exchange rate policy. The BSP determines the exchange rate policy of the
Philippines. Currently, the BSP adheres to a market-oriented foreign exchange rate policy such
that the role of Bangko Sentral is principally to ensure orderly conditions in the market.
 Other activities. The BSP functions as the banker, financial advisor and official depository of the
Government, its political subdivisions and instrumentalities and government-owned and -
controlled corporations.
 As part of the monetary authorities’ effort to promote greater transparency of monetary policy-
making in the Philippines, enhance public awareness on the role of the BSP in the Philippine
economy, and help manage inflation expectations and reputational risks, the BSP conducts a
series of public information campaign on the role of the BSP in the Philippine economy and the
recent economic developments in various cities within and outside Metro Manila.

State University/College and

City/Region
June NCR (Venue to be announced later)
Don Mariano Marcos Memorial State University, Bacnotan, La
June
Union (Region I)
June Bicol University, Daraga Campus, Legazpi City (Region V)
July Cavite State University, Indang, Cavite (Region IV)
July Aklan State University, Banga, Aklan (Region VI)
August Bataan State College, Balanga City (Region III)
August Bulacan State University, Malolos, Bulacan (Region III)
September Palawan State University, Puerto Princesa City (Region IV B)
October Western Mindanao State University, Zamboanga City (Region IX)
October West Visayas State University, La Paz, Iloilo City (Region VI)
Cagayan de Oro College-Phinma Education Network, Cagayan de
November
Oro City (Region X)
December University of Southeastern Philippines, Davao City (Region XI)

The BSP is deeply involved in various projects and activities aimed towards alleviating poverty,
contributing to the global fight against money laundering, increasing transparency of monetary policy and
improving the financial literacy of the public.

 The BSP has declared microfinance as its flagship program for poverty alleviation in Year 2000
and has since then played a key role in the development of sustainable microfinance in the
country. The BSP initiatives have focused on the policy and regulatory environment, training and
capacity building as well as on promotion and advocacy.

 In order to implement its continued commitment and support of the global fight against money
laundering, the BSP worked for the passage of the Anti-Money Laundering Act and issued a
number of measures to bring the Philippines' regulatory regime on money laundering closer to
international standards.

 The BSP has been conducting public information campaigns in line with the effort to increase
public awareness on the role of the BSP in the economy and the financial system and to further
enhance the transparency of monetary policy.

 The BSP has also taken a proactive stance in embarking on a consumer education program that
aims to improve the basic financial literacy of the public.

 The BSP undertakes various bank-related initiatives to improve the remittance environment and
to channel remittances to productive undertakings. Through these initiatives, the BSP intends to
maximize the benefits of remittances aimed at: (1) ensuring the smooth inflow of remittances, and
(2) promoting their use for development by channeling them to the financial sector so that these
funds can be mobilized for lending and other productive activities.

About The Money Circulation

In monetary economics, circulation is the continuing use of individual units of a currency for
transactions. Thus currency in circulation is the total value of currency (coins and paper currency)
that has ever been issued minus the amount that has been removed from the economy by
the central bank. More broadly, money in circulation is the total money supplyof a country, which
can be defined in various ways always including currency and also including some types of bank
deposits.
Standard money is the basic currency circulating within a monetary system. It has legal recognition
for prices and settlement.[1] According to Karl Marx circulation is a process which is established
by capital and formed from wealth.[2]
The amount of money in circulation varies according to a number of factors. For example, there is
more demand at Christmas time when commercial activity is high. Notes and coins stored in
warehouses are ordered by banks and sent to them so they may increase supply.[3]
Gold coins are the traditional kind of coin placed into circulation. Some coins enter circulation before
a die defect in their design is discovered and they are removed. If a coin is in circulation for a short
period of time it is more likely to be of interest to coin collectors.

Total currency in circulation

In 1990, total currency in circulation in the world passed one [Orders of magnitude #1012
trillion] USD. After 12 years, in 2002 this figure was two trillion USD, and in 2008 it had increased to
four trillion USD.[5]
As of 31 December 2015, the Bank for International Settlements provides detailed statistics of the
worth of banknotes and coins for 18 major currencies converted to billions of US dollars using the
exchange rate at the end of the year. The total value is $4,687 billion.

Banknotes and coin in circulation (12/31/2016)

Per capita Country Billions of dollars

$9,516.04 Switzerland $79.68

$7,341.34 Hong Kong SAR $54.16

$7,214.21 Japan $915.72

$5,241.81 Singapore $29.39

$4,671.03 United States $1,509.34

$3,579.10 Euro area $1,217.91

$2,379.05 Australia $57.71

$1,787.01 Canada $64.40

Banknotes and coin in circulation (12/31/2016)

Per capita Country Billions of dollars

$1,677.72 Saudi Arabia $53.33

$1,584.11 Korea $80.48

$1,428.55 United Kingdom $93.78

$989.34 Russia $145.11

$688.80 Sweden $6.88

$565.17 Mexico $68.71

$443.58 Turkey $35.40

$345.64 Brazil $71.23

$151.26 India $196.49

$130.90 South Africa $7.20

$1,598.16 CPMI[non sequitur] $4,686.91

China is not part of the calculation and may be over a trillion dollars today. That leaves over 160
countries not calculated. The calculation also does not include Cryptocurrencies such as Bit
coin and Ripple, whose total value in circulation exceeds five hundred billion dollars.
Money Circulation
The process of the continuous movement of money as a medium of circulation and payment.
This process takes place withinthe framework of the monetary system of every country. The circulation
Process breaks through the individual and localboundaries of the direct exchange of products, bringing
about the development of “a whole network of social relations . . .entirely beyond the control of the actors”
(K. Marx; see K. Marx and F. En-gels, Soch., 2nd ed., vol. 23, p. 123). Therefore,
under the conditions of simple commodity production, the metamorphosis C—M C (Commodity—Money—
Commodity) itself contains the possibility of a gap between the actions of buying and of selling, C—
M and M—C (selling without buying), thatis, the possibility of creating an over-production crisis.
On the basis of simple money circulation, the circulation of money as capital is developed according to
the formula M—C—
M. Under capitalism, money circulation promotes not only the process of the exchange of ordinary goods
But also the exchange of a special commodity—labor power—
for consumer goods (essential for the workers’ existence) as a condition forits extended reproduction. This
sphere of money circulation is in fact the one that imparts a specifically capitalist character tothe process
of money circulation.
In the field of money circulation a number of economic laws are in effect: the law of quantity of money
Needed for circulation (Qn) is defined by Marx’ well-known formula:
The law of the real (exchange) value of currencies states that at a given quantity Qn this value is inversely-
roportional to the quantity of token money in circulation. The law of bank notes in circulation states that
the terms underwhich the bank notes are issued inherently include conditions of their flow back to the
bank of issue. Marx considered thatthe law Qn has a universal significance; that is, it is in effect in all social
structures in which commodity production and moneycirculation exist. This applies to other laws
governing the money circulation as well.

Under the socialist economic system, money circulation basically serves the process of the planned
distribution of consumergoods according to labor through the mechanism of trade (state and cooperative)
as well as the process of commoditycirculation between socialist enterprises; that is, it acquires
qualitatively new content. Under socialism, the formula M—C—
Mexpresses a planned process, regulated by the state, whereby socialist enterprises create net income
and realize it throughthe mechanism of wholesale and retail trade. The whole complex of relations
expressed by commodity and money circulationunder socialism is controlled by the “actors” and
organizations of the state representing them, whereas in the presocialisteconomy the money turnover is
not subject to any “attempt to check, measure, and compute. . . . Money starts its circuit froman endless
multitude of points.…It would be even less correct to depict the circulation of money as a movement which
radiates from one center to all points of the periphery and returns from all the peripheral points to the
same center” (K. Marx,ibid., vol. 13, p. 85). In socialist society an organized commodity turnover creates
the necessary conditions for thecentralization of monetary flows: here, the money circulation in fact
represents such a movement radiating from one center toall points on the periphery and returning from all
these points to the same center. The planning of monetary flows in theUSSR national economy has been
organized on this basis.
The laws of money circulation remain in force under the socialist economy, where they are used in the
interest of the entiresociety in the process of national economic planning. This constitutes the fundamental
difference in their operation undersocialism and under social formations that preceded socialism.
The planning of monetary flows and the national control ofthe implementation of plans for the entire
country and for individual republics, oblasts, and raions represent the specific formin which the laws of
money circulation operate under socialism. The laws of money circulation are closely linked to all the
other economic laws of socialism and play an important role in ensuring their normal operation.
For example, only if money isstable in value can the growth of real wages of office and production workers
and the money income of kolkhoz workers beeffectively guaranteed, and such a growth is the prerequisite
to an effective system of material incentives for achievingincreased productivity of labor, continuous
productive growth, and socialist accumulation. At the same time, it is necessary totake into account the
requirements of the law of distribution according to labor to ensure proportionality between production
growth and the growth of the wage funds because the dynamics of commodity volume and quantity of
money in circulation depend on this proportionality.