Section 19
Sec. 19. In connection with its open market operations, the Reserve Bank shall also have the power: (a) To deal in gold coin and bullion, at home or abroad, to make loans thereon, exchange its notes for gold or gold coin, and to contract for loans of gold coin or bullion giving therefor when necessary, acceptable security, including the hypothecation of Philippine and United States Government bonds or other securities which the Peserve Bankiis authorized to hold; (b) To buy and sell, at home or abroad, bonds of the Government, its political subdivisions and instrumentalities; (c) To purchase from member banks and to sell, with or without their indorsement, bills of:exchange, promissory notes and negotiable instruments specified in subsections (a), (b) and (d) of section seven. RELATION OF THE RESERVE BANK WITH THE GOVERNMENT