Action when the international stability of the peso is threatened.
Section 70
SEC. 70. Action when the international stability of the peso is threatened.—Whenever the international reserve of the Central Bank falls to an amount which the Monetary Board considers inadequate to meet the prospective net demands on the Central Bank for foreign currencies, or whenever the international reserve appears to be in imminent danger of falling to such a level, or whenever the international reserve is falling as a result of payments or remittances abroad which, in the opinion of the Monetary Board, are contrary to the national welfare, the Monetary Board shall: (a) Take such remedial measures as are appropriate and within the powers granted to the Monetary Board and the Central Bank under the provisions of this Act; and (b) Submit to the President of the Philippines a detailed report which shall include, as a minimum, a description and analysis of: (1) The nature and causes of the existing or imminent decline; (2) The remedial measures already taken or to be taken by the Monetary Board; (3) The further monetary, fiscal or administrative measures proposed; and (4) The character and extent of the cooperation required from other Government agencies for the Successful execution of the policies of the Monetary Board. If the resultant actions fail to check the deterioration of the reserve position of the Central Bank, or if the deterioration cannot be checked except by chronic restrictions on exchange and trade transactions or by sacrifice of the domestic objectives of a high level of production, employment and real income, the Monetary Board shall propose to the President such additional action as it deems necessary restore equilibrium in the international balance of payments of the Philippines. The Monetary Board shall submit periodic reports to the President until the threat to the international monetary stability of the Philippines has disappeared.