Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails.・Read the official text ↗
Designation of Central Bank as fiscal agent and banker of the Government.
SEC. 115. Designation of Central Bank as fiscal agent and banker of the Government.—The Central Bank of the Philippines shall act as the fiscal agent and banker of the Government its political subdivisions and instrumentalities.
Representation with the International Monetary Fund.
SEC. 116. Representation with the International Monetary Fund.—The Central Bank of the Philippines shall represent the Government of the Philippines in all dealings, negotiations and trans actions with the International Monetary Fund and shall carry such accounts as may result from Philippine membership in, or operations with, said Fund.
Representation with other financial institutions.
SEC. 117. Representation with other financial institutions.—The Central Bank may be authorized by the Government to represent it in dealings, negotiations or transactions with the International Bank for Reconstructions and Development and with other foreign or international financial institutions or agencies.
Official deposits.
SEC. 118. Official deposits.—The Central Bank shall be the official depository of the Government and its political subdivisions and instrumentalities: Provided, however, That the Monetary Board may designate Government-owned banks and other banks incorporated in the Philippines to accept deposits from said entities, subject to such rules and regulations as the Board may prescribe.
Fiscal operations.
SEC. 119. Fiscal operations.—The Central Bank shall open a general cash account for the Treasurer of the Philippines, in which the liquid funds of the Government shall be deposited. Transfers of funds from this account to other accounts shall be made only upon order of the Treasurer of the Philippines.
Other banks as agents of the Central Bank.
SEC. 120. Other banks as agents of the Central Bank.—In the performance of its functions as fiscal agent, the Central Bank may engage the services of the Philippine National Bank and of other domestic banks for operations in localities at home or abroad in which the Central Bank does not have offices or agencies adequately equipped to perform said operations: Provided, however, That for fiscal operations in foreign countries, the Central Bank may engage the services of foreign banking and financial institutions.
Remuneration for services.
SEC. 121. Remuneration for services.—The Central Bank shall not charge for services which lit renders to the Government and to its political, subdivisions and instrumentalities any rates, commissions or fees. The Bank shall not pay interest on deposits of the Government or of its political subdivision's and instrumentalities.
Issue of Government obligations.
SEC. 122. Issue of Government obligations.—The issue of securities representing obligations of the Government, its political subdivisions or instrumentalities, shall be made through, the Central Bank, which shall act as agent of, and for that account of, the Government or its respective subdivision or instrumentality, as the case may be: Provided, however, That the Bank shall not subscribe to the issue of said securities and shall not guarantee their placement.
Methods of placing Government securities.
SEC. 123. Methods of placing Government securities.— The Central Bank may place the securities to which the preceding section refers through direct sale to financial institutions and the public, through outright sale to syndicates, brokers or dealers for purposes of resale to the public for their own account, or through brokers or banks contracted to place the securities with the public for the account of the Central Bank. The Central Bank shall not be a member of any stock exchange or syndicate, but may intervene therein, for the sole purpose of regulating their operations in the placing of Government securities. The Government, or its respective subdivisions or instrumentalities, shall reimburse the Central Bank for the expenses incurred in the placing of the aforesaid securities.
Servicing and redemption of the public debt.
SEC. 124. Servicing and redemption of the public debt.— The servicing and redemption of the public debt shall also be effected through the Central Bank. B. CENTRAL BANK SUPPORT OF THE GOVERNMENT SECURITIES MARKET
The Securities Stabilization Fund.
SEC. 125. The Securities Stabilization Fund.— There shall be established a "Securities Stabilization Fund" which shall be administered by the Central Bank for the account of the Government. The operations of the Securities Stabilization Fund shall consist of purchases and sales, in the open market, of bonds and other evidences of indebtedness issued or fully guaranteed by the Government of the Philippines. The purpose of these operations shall be to increase the liquidity and stabilize the value of said Securities in order thereby to promote private investment in Government obligations. The Monetary Board shall use the resources of the Fund to prevent, or moderate, sharp fluctuations in the quotations of said Government obligations, but shall not endeavor to alter movement of the market resulting from basic changes in the pattern or level of interest rates. The Monetary Board shall issue such regulations as may be necessary to implement the provisions of this section.
Resources of the Securities Stabilization Fund.
SEC. 126. Resources of the Securities Stabilization Fund.— The resources of the Securities Stabilization Fund shall come from the following sources: (a) Two million (P2,000,000) pesos, which are hereby appropriated from the assets of the Exchange Standard Fund, as provided in section 134 of this Act, and such other appropriations as the Government may make from time to time; (b) That part of the annual net profits of if the Central Bank allocated to the Fund in accordance with the provisions of section 41; (c) Profits arising from recoinage or from reductions in the currency issue, under the conditions specified in section 45.
Profits and losses of the Fund.
SEC. 127. Profits and losses of the Fund.—The Securities Stabilization Fund shall retain any net profits which it may make on its operations, regardless of whether said profits arise from capital gains or from interest earnings. The Fund shall correspondingly bear any net losses which it may incur.
Financial advice on official credit operations.
SEC. 128. Financial advice on official credit operations.— Before undertaking any credit operation abroad, the Government, through the Secretary of Finance, shall request the opinion, in writing, of the Monetary Board on the monetary implications, of the contemplated action. Such opinions must similarly be requested by all political subdivisions and instrumentalities of the Government before any credit operation abroad is undertaken by them. The opinion of the Monetary Board shall be based on the gold and foreign exchange resources and obligations of the nation and on the effects of the proposed operation on the balance of payments and on the volume of the money supply. Whenever the Government, or any of its political subdivisions or instrumentalities, contemplates borrowing within the Philippines, the prior opinion of the Monetary Board shall likewise be requested in order that the Board may render an opinion on the probable effects of the proposed operation on the money supply, the price level, and the balance of payments.
Representation on the National Economic Council.
SEC. 129. Representation on the National Economic Council.— In order, to assure effective coordination between the economic, financial and fiscal policies of the Government and the monetary, credit and exchange policies of the Central Bank, the Governor of the Central Bank shall be an ex officio member of the National Economic Council.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Source: Official Gazette of the Republic of the Philippines — Philippine laws are public documents (works of the government).